Don’t want to file your tax return on April 15? Here’s what to do

The tax filing deadline is at all times April 15, but when life gets in the way in which, there is no need to panic.

If you are not in trouble yet, your taxes are due on April 15, which is just a couple of days away. As you almost certainly already know, preparing to file your tax return can take a whole lot of effort and time, which suggests getting it done will probably be an enormous relief for a lot of. However, when you are fighting time and are unsuccessful, chances are you’ll need other options.

Even though we settle our accounts yearly, loads can change in the course of the 12 months. Maybe you purchased or sold a house, got married, divorced or had a baby. Perhaps your income has increased significantly or you’ve began a business. Whatever it’s, life is coming to life and chances are you’ll just need a minute or two to catch up on your taxes.

So when you didn’t get all the pieces together in time to file your tax return on April 15, what are you able to do and what happens when you don’t file your tax return by April 15? First, the legality of all of it: taxes are still due on April 15. The only thing that changes is that if the fifteenth falls on a weekend or conflicts with a vacation; you then normally have until 5 p.m. Apart from these circumstances, since 1955 the filing deadline has been April 15, so one of the best thing you may do is get your taxes paid on time.

However, as mentioned earlier, life happens. So when you cannot file your tax return by April 15, here’s what you may do:

First, ignore the tendency to do nothing. So many individuals do this as a part of the IRS assessing billions in penalties for failing to file tax returns on time. This is something you may ignore or cope with when you’ve time. Failure to file anything could actually cost you extra money than chances are you’ll ultimately owe.

Instead of doing nothing, apply for an extension. You can fold IRS Form 4868, a free and penalty-free document that taxpayers can file with the IRS in the event that they need more time to file their individual federal tax returns. By filing for an automatic deadline extension, you will have a further six months – or until October 15 – to receive your tax return. However, the deadline to file Form 4868 stays the identical: tax day, April 15. If you let this deadline pass, so does your probability for an extension – and any returns filed after April 15 without Form 4868 will probably be considered late and can due to this fact incur a late filing penalty.

Bottom line: It’s higher to file for an extension than to file nothing and suffer penalties. Even as a financial expert who is incredibly aware of tax deadlines and potential liabilities, I filed Form 4868 myself. There was a 12 months once I moved and lost my W2; I needed time to settle in and eventually went to Taxpayer advocate service to obtain a replica of my earnings and tax certificate (yes – because I’m an adult). It may not have been fun, but I used to be able to file for the extension after which file an accurate tax return by October fifteenth.

Now that we have covered how to file an extension, please note the important caveat: an extension to file your tax return is an extension of the deadline to pay taxes owed. Some people think it’s higher to wait to file their tax return until they’ve the cash to pay the taxes they owe, but that is not the case.

Taxes can turn into real debt. Typically, interest accrues on unpaid taxes from the date the refund is due until the debt is paid off – and depending on how long it takes, that might mean a monetary amount. In fact, the interest you accrue may amount to greater than you owe initially. The late payment penalty is frequently half of 1% for every month or a part of a month of unpaid tax, up to 25 percent.

With that in mind, even when you’re not ready to file an actual return, when you discover you truly owe, try to pay as much as you may upfront.

So when you’re not ready to file your taxes on Monday, don’t panic; most taxpayers can digitally file Form 4868 to request an automatic six-month tax filing extension. And note: While you do not have to provide a reason for requesting an extension, if your request is denied, the IRS will contact you directly to let you recognize why.

Once you apply for an extension, chances are you’ll be relieved to know that you have bought yourself a couple of extra months, but use that point correctly and ensure to file your return before the October 15 deadline. If you miss this extension deadline, no additional options will probably be available and costs and penalties will immediately begin to accumulate.

Happy assembling!

Jennifer Streaks is a senior personal finance reporter and spokeswoman for Business Insider and a financial specialist at theGrio. A nationally recognized expert on money and inexpensive lifestyles, Jennifer is a renowned financial columnist whose columns have appeared on CNBC, Forbes, ABC, MSNBC, CBS and more.

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