What to Do If You Missed the 2023 Tax Deadline (Including the Extension)

Missing the tax deadline is stressful enough, but what happens if you also miss the extension deadline? While it’s not an ideal situation, it’s not the end of the world. There are still steps you can take to get back on track with the IRS and minimize penalties. Here’s a guide on what to do if you missed both the original 2023 tax deadline and the extension.

1. File Your Tax Return Immediately

Whether you missed the April deadline or the October extension deadline, the best thing to do is file your tax return as soon as possible. The longer you delay, the higher the penalties and interest you’ll incur.

If you’re expecting a refund, the good news is that you won’t face penalties for late filing. However, it’s still a good idea to file soon to claim your refund. If you owe taxes, filing now can stop the Failure to File Penalty from growing, which is 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%.

2. Pay What You Owe (Even If It’s Partial)

If you missed the deadline and owe taxes, pay as much as you can when you file. Even a partial payment will help reduce the interest and penalties that accumulate on the unpaid balance. The IRS charges a Failure to Pay Penalty of 0.5% of the unpaid taxes for each month you don’t pay, so making a partial payment is a smart move to minimize the amount you owe.

The IRS also offers payment plans if you can’t pay in full. You can apply online for an installment agreement or use Form 9465 when you file your return. Once you’re on a payment plan, additional penalties will stop, and you can focus on paying down the remaining balance.

3. Understand the Penalties You Might Face

Missing both the original tax deadline and the extension can lead to penalties, but understanding them will help you address the situation. Here are the two main types:

• Failure to File Penalty: This is the larger penalty, at 5% of your unpaid taxes per month, up to a total of 25%.

  
  

• Failure to Pay Penalty: This is smaller but still adds up—0.5% of the unpaid taxes per month, also capped at 25%.

  
  

Interest is also charged on the amount you owe, so the sooner you take action, the better.

4. Explore Penalty Relief Options

If this is your first time filing late, or if you had a legitimate reason for missing the deadlines (such as a family emergency or natural disaster), you may qualify for penalty relief. The IRS offers First-Time Penalty Abatement for taxpayers with a clean filing and payment history, or you can request relief if you have a reasonable cause for being late.

To request penalty relief, you’ll need to contact the IRS directly or submit Form 843. A tax professional can help you determine if you qualify and assist in the application process.

5. Set Up a Payment Plan

If you can’t afford to pay your entire tax bill immediately, don’t panic. The IRS offers a range of payment options to help you manage what you owe. You can apply for an installment agreement, which allows you to make monthly payments over time. Short-term payment plans are also available for those who can pay the balance within 120 days.

Applying for a payment plan can prevent further penalties and interest from accumulating, so it’s worth exploring if you’re unable to pay in full.

6. Seek Professional Help

Navigating late filings, penalties, and payment plans can be confusing. This is where a tax professional comes in handy. They can help you file your late return, minimize penalties, and even negotiate with the IRS on your behalf. If you’ve missed both deadlines, it’s worth consulting with a tax expert to make sure you’re taking the right steps.

7. Plan Ahead for Next Year

Once you’ve filed your return and addressed any outstanding payments, it’s important to set yourself up for success next year. Missing tax deadlines can be stressful and costly, so take steps to avoid this situation in the future.

Here are some tips:

• Set reminders for both the April tax deadline and the October extension deadline (if needed).

  
  

• Organize your financial documents throughout the year to make tax filing easier.

  
  

• Consult a tax professional early in the season to avoid last-minute filing pressure.

  
  

Conclusion

Missing both the 2023 tax deadline and the extension deadline can lead to penalties, but it’s not too late to take action. File your return as soon as possible, pay what you can, and explore payment plans if necessary. If you qualify for penalty relief, make sure to take advantage of it. With quick action and a clear plan, you can minimize the financial impact and avoid further issues with the IRS.

Need help filing a late return or dealing with IRS penalties? Contact Turner Business Solutions today for professional assistance and get your tax situation back on track!

(316) 285-0125 or schedule a consultation