Can I File Taxes Late If I Don't Owe Money

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Filing Your Taxes Late

Updated for Tax Yr 2021 • Jan 11, 2022 08:22 PM

OVERVIEW

What exercise you do if yous can't meet the IRS filing deadline? Learn more about filing a tax extension, tardily payment and late filing penalties, and what to do if y'all can't pay your taxes.

For information on the third coronavirus relief package, please visit our "American Rescue Programme: What Does it Hateful for You and a Third Stimulus Check" weblog post.

The federal tax return filing deadline for tax year 2021 was April eighteen, 2022:

If you missed the deadline and did not file for an extension, information technology'southward very important to file your taxes as before long equally possible. Filing with TurboTax is fast, easy and guaranteed to get you the biggest refund you deserve.

Why file for an extension?

Filing an extension automatically pushes back the tax filing deadline and protects you from possible penalties. Belatedly-filing penalties tin can mount upwards at a rate of 5% of the amount due with your render for each month that you're late.

For example, if you owe $ii,500 and are iii months late, the late-filing penalty would be $375. ($2,500 10 0.05) ten 3 = $375
If you're more than 60 days tardily, the minimum penalisation is $100 or 100% of the taxation due with the return, whichever is less.
Filing for the extension wipes out the punishment.

TurboTax Easy Extension is a fast and piece of cake fashion to file your extension, right from your reckoner.

How long is my extension practiced for?

If you filed an extension past Apr eighteen, 2022 (2021 taxation twelvemonth borderline), it extends your filing borderline to Oct 17, 2022.

An extension of time to file your return does not mean an extension of time to pay your taxes.
If you expect to owe coin, you're required to estimate the amount due and pay information technology with your Form 4868. As long as you exercise that, the extension volition be granted automatically.

What if I didn't inquire for an extension?

The consequences differ depending on whether you lot owe the IRS money or the IRS owes y'all a refund.

If you are getting a refund:

This is ane of the great little secrets about the federal tax law. If you have a refund coming from the IRS—equally virtually three out of four taxpayers do every year—then there is no penalty for failing to file your tax return by the deadline, even if you don't ask for an extension. Yet, this might non be the case for state taxes.

That'southward not to say in that location aren't very good reasons for filing on time. Even if you have a refund coming, consider the following:

You can't become your money back until you file, so you should file every bit before long as y'all can to get your money every bit soon as possible.
The statute of limitations for the IRS to audit your return won't start until you really file your render. So, the sooner you file, the sooner the clock starts ticking.
Some taxation elections must be fabricated by the due date, even if you accept a refund coming. This applies to a very tiny percentage of taxpayers.

If y'all have a remainder due:

If y'all haven't paid all of the taxation you owe past the filing borderline:

You'll likely stop upwardly owing a tardily payment penalization of 0.5% per month, or fraction thereof, until the tax is paid.
The maximum late payment penalty is 25% of the amount due.
Y'all'll likewise probable owe interest on whatever amount you didn't pay by the filing deadline.

If you didn't go an extension,

Yous are also looking at a late filing penalty of 5% of the unpaid taxation per month, plus interest.
The maximum late filing penalty is 25% of the amount due.

Beware: No statute of limitations

Regardless of whether you are due a refund or owe, there is some other betoken to keep in mind: If you never file your return, there is no limit on how many years the IRS can become back to assess and collect tax.

What if I owe the IRS but can't pay?

If you lot find yourself in this state of affairs, yous have a few options available, such as:

credit carte du jour payments
installment agreements
"offers in compromise"

You tin can also simply file your return and wait for the IRS to bill yous, but don't be surprised if the bill includes interest and penalties.

Can I pay my tax by credit card?

Yes, you tin pay your tax nib with credit in a variety of ways. Credit carte du jour and bank loans are both payment options. You can apply for a bank loan, home disinterestedness loan or take a cash advance on a credit card to pay your tax bill.

Tertiary party providers like Official Payments Corporation are as well available to facilitate using a credit card to pay your tax bill.

These companies charge a convenience fee (around 2.5% of the amount being paid) for their service.
That fee is in addition to whatsoever involvement and finance charges your credit menu company may accuse you.

Can I pay my tax in installments over fourth dimension?

If you lot find yourself attributable more than you can afford, y'all should still file a return.

Fifty-fifty if you don't enclose a check for the residuum due, sending in your render protects you lot from the late-filing penalty that otherwise would proceed digging you deeper into a hole.
Attach a Form 9465 Installment Agreement Request to your revenue enhancement render asking the IRS to set a monthly payment plan to pay off what you owe.

Nearly ii.5 million taxpayers are paying off their bills under such an arrangement and recently the IRS made it easier to qualify. In the past, before the IRS would okay an installment plan, the agency demanded a await at your finances—your assets, liabilities, cash catamenia and then on—so it could determine how much you lot could beget to pay.

That's no longer required in cases where the amount owed is under $10,000 and the proposed payment plan doesn't stretch over more than three years.
You can also now apply online for the installment agreement. More details are available on the IRS website

Don't call up the IRS is a patsy, though. Yous may be better off if you can borrow the money to pay your neb, rather than become on an installment plan which means, effectively, borrowing from the IRS.

The IRS charges a $52 fee to set up an installment payment plan for directly debit; $105 for non-direct debit agreements. (For eligible low-income individuals, the fee is $43.)
The IRS interest rate on late payments was 3% for the fourth quarter of 2021 and can modify quarterly.
At that place'due south also a belatedly-payment punishment of 1/4 of 1% a calendar month. The three% 2021 involvement rate plus 1/4 of 1% a calendar month adds upward to the equivalent of 6% a year.

Does the IRS ever negotiate the amount owed?

Under certain circumstances, the IRS is authorized to resolve a taxation liability by accepting less than total payment. An "offer in compromise" is an understanding between a taxpayer and the IRS that settles the taxpayer's tax debt. There are three circumstances under which the IRS is authorized to compromise:

When there is doubt that the tax is correct.
When at that place is doubt that you could ever pay the tax in full.
When the tax is correct and you could pay information technology, merely payment would issue in an exceptional circumstance, economic hardship, or be unfair and inequitable.

Form 656: Offer in Compromise Parcel should be completed to file an Offer in Compromise with the IRS. Included with the Form 656 package are Form 433-A, Drove Information Statement for Wage Earners & Self-Employed Individuals and Form 433-B, Collection Information Statement for Businesses.

You lot may need to complete the appropriate Grade 433 and should be prepared to provide other documentation and explanations as they are requested.
Various options are available for accustomed Offers in Compromise requests, such as a reduced total payment and scheduled monthly payments.
Defaulting on an accepted offer in compromise tin effect in the IRS filing suit against y'all and reinstatement of the original revenue enhancement debt, plus interest and penalties.

Can I go an extension of fourth dimension to pay my revenue enhancement?

An extension of time for payment of tax tin exist filed with the IRS on Form 1127: Awarding for Extension of Time for Payment of Tax, but the legal requirements are strict:

Form 1127 must be received by the IRS on or before the date that the tax is due.
Y'all must provide a consummate argument of all your assets and liabilities at the end of the final calendar month, and an itemized list of coin you received and spent for the three months immediately prior to sending in the extension to pay request.
Y'all must demonstrate that paying the taxation when due would effect in undue hardship; elementary inconvenience is not enough of a hardship to qualify.
Y'all demand to show that paying the tax when due would result in a substantial fiscal loss and that you don't have the cash, or tin't raise the coin, past selling property or through borrowing.

When approved, extensions to pay are by and large express to six months. Plus, the IRS requires some acceptable form of security earlier granting an extension of time to pay. The security may be in the form of a bond, notice of lien, mortgage or other ways, depending upon individual circumstances.

There are times when extensions are granted especially due to federally declared disasters. You can check for boosted relief information on the IRS Disaster Relief folio.

Think, with TurboTax, we'll ask you simple questions about your life and aid you fill out all the correct tax forms. With TurboTax you can be confident your taxes are done right, from uncomplicated to complex tax returns, no matter what your situation.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the constabulary, or whatever other business organization and professional matters that bear on you and/or your business.

Source: https://turbotax.intuit.com/tax-tips/irs-tax-return/filing-your-taxes-late/L7IhvwH9b

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Can I File Taxes Late If I Don't Owe Money

Filing Your Taxes Late