The end of tax season was officially April 18, 2022, which means the IRS is diving into enforcements and catching up on notices. What should you do, and what should you expect if you missed the filing deadline?
One-Time Penalty Relief
For late filers who have a history of filing and making payments on-time, you may qualify for one-time penalty relief. One-time penalty relief could reduce your owed balance by removing penalties such as interest. It’s also referred to as penalty abatement.
What Happens to Your Refund When You File Late?
Although your return is late, you should still file your taxes as soon as possible. If you are expecting to receive a return, but you filed late, you may have some of the balance offset and receive a smaller refund.
If you qualify for one-time penalty relief, you will not owe a balance and you can expect to receive the full refund.
Because you filed late, your refund will likely be late as well. The IRS has a huge backlog and the returns that are e-filed on time are top priority. Filing by paper and filing late will increase the likelihood of delays.
Penalties for Filing Your Taxes Late
Penalties for late filing range based on how late you file. Filing a few days late could result in interest on your balance. You will continue to accrue interest daily until you file, or the IRS will take more serious enforcement action.
Some of these more serious actions include levies and account liens, or even garnishing your wages to pay the balance owed.
Tax Debt Relief
Cases of tax returns that are years behind, or accounts that have been levied may benefit from professional assistance. Tax debt relief is available for many cases, in the form of payment agreements, offer in compromise, penalty abatement, and innocent spouse relief.
Call Optima for a free consultation today at (800) 536-0734. Our tax professionals may be able to assist you with your case.