Tax season can be stressful for anyone, but it can be particularly challenging for 1099 workers and taxpayers over the age of 30 with bills, kids, and other responsibilities. Unfortunately, missing the deadline to file your 2022 tax return can have dire consequences, including IRS penalties and interest, back taxes, and back tax debt. In addition, when left unaddressed, you might face wage garnishment or bank levy, which you want to avoid dealing with in the long run.
This blog post will explain why filing on time is crucial and what to do if you miss the deadline.
Important 2023 Tax Filing Deadlines
Understanding the various deadlines associated with tax season is essential so you can file on time and not face any penalties. Tax Day on April 18, 2023, is the most critical deadline to file your tax return. However, if you cannot file by this date, you can request a six-month extension, pushing the deadline to October 16, 2023. It’s important to note that while an extension can give you more time to file, it does not extend the deadline to pay any taxes owed. You must still pay any estimated taxes due by the April 18th deadline, or you will be subject to ‘failure to pay’ penalties and interest.
The Dire Consequences of Late Filing Taxes
If you miss the April 18th deadline and do not request an extension, you may face late filing penalties imposed by the IRS. The penalty for late filing taxes is typically 5% of the unpaid taxes for each month or partial month your tax return is late, up to a maximum of 25%. Additionally, interest is charged on any unpaid taxes from the due date of the return until the date you pay.
The longer you wait to file, the more interest and penalties you will owe. If you continue to delay filing your tax return, the IRS can start collection activities, including wage garnishment, levies on bank accounts, and liens on your property. Furthermore, failing to file a tax return can result in back tax debt, which can be incredibly challenging to resolve without the help of a tax professional.
Do you already have back taxes accumulated? Then, don’t delay any longer. Contact us today to help you resolve your back tax debt.
What You Should Do If You Miss the 2023 Tax Filing Deadline
If you missed the deadline to file your 2022 tax return, you should first file your tax return as soon as possible. Even if you cannot pay the taxes owed, filing your tax return and working with the IRS to set up a payment plan is better than facing additional penalties and interest.
Tax season can be overwhelming, but filing your tax return on time is essential to avoid IRS penalties and interest. If you miss the deadline to file your 2022 tax return, don’t panic. Instead, file your tax return as soon as possible and work with a tax professional if you need help resolving any back tax debt. The longer you wait, the more interest and penalties you owe.
Knowing where to turn for help can be challenging if you’re struggling with back tax debt. That’s where Justice Tax comes in.
We’re a team of experienced tax professionals specializing in resolving tax problems for 1099 individuals and business owners. Whether you need help filing back tax returns or negotiating a payment plan with the IRS, we’re here to help. Contact us today to learn how we can help you get back on track with your taxes.