With the extended July 15 deadline passing last week, most taxpayers have either filed their taxes or filed extensions. However, it is not too late if you were not quite able to make last week’s deadline.
If you are entitled to a refund, there is no penalty for filing late. Penalties and interest will begin to accrue on any remaining unpaid tax due as of July 16, 2020.
Anyone who did not file and owes tax should file a return as soon as they can and pay as much as possible to reduce penalties and interest. Taxpayers should then review their payment options.
Filing soon is very important because the late-filing penalty and late-payment penalty on unpaid taxes adds up quickly. However, in some cases, a taxpayer filing after the deadline may qualify for penalty relief. For those charged a penalty, they may contact the IRS and explain why they could not file and pay on time.
Additionally, taxpayers who have a history of filing and paying on time often qualify for administrative penalty relief. A taxpayer will usually qualify if they have filed and paid timely for the past three years and meet other requirements (first-time penalty abatement page).
Call the Crosslin tax team at 615-320-5500 with any questions. We are here to help!