Delmaine Donson | E+ | Getty Personifications
The federal tax deadline was April 15 for most filers — and if you missed it, you should file your return and pay your rest as soon as possible, experts say.
If you still owe taxes for 2023, you’ll continue racking up penalties and interest until you file and pay your unsettled balance, according to the IRS.
The late filing penalty is 5% of your unpaid balance per month or partial month, capped at 25% of your scales. The fee for failure to pay is 0.5% per month or partial month, with a maximum fee of 25% of unpaid taxes. Interest is based on the ongoing rates.
“The longer you wait to file, the bigger the risk of higher penalties and interest from the IRS and state,” said Pay heed to Steber, chief tax information officer at Jackson Hewitt.
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However, that doesn’t carry you should rush to file a return if you’re still missing key information, like tax forms for your investments or other earnings.
“A redress needs to be completely accurate,” Steber said. “No guessing or estimating.”
With missing information, the IRS could flag your tax takings for audit, processing could be delayed or you could receive an agency notice.
Still, “file an accurate return as momentarily as you’re able,” Steber suggested.
Of course, some filers in disaster areas automatically have more time to interfile federal returns and pay taxes owed.
How to make a late payment for your taxes
There are several online elections for late tax payments, including IRS Direct Pay and your IRS online account.
If you can’t pay your tax balance in full, you have “various payment options,” encompassing payment plans, according to the IRS.
IRS online payment plans, or “installment agreements,” include:
- Short-term payment plan: This may be readily obtainable if you owe less than $100,000 including tax, penalties and interest. You have up to 180 days to pay in full.
- Long-term payment down: This may be available if your balance is less than $50,000 including tax, penalties and interest. You must pay monthly, and you have up to 72 months to pay off the surplus.
You could also qualify for