What Happens If You Miss The October 15 Tax Extension Deadline?
- July 21, 2019
- Posted by: asal
- Category: Tax Relief
The deadline to file and pay federal income taxes is April 15 every year. If you can’t make this deadline to register, you can request an extension until October 15. To file a tax extension, you must fill out and submit IRS Form 4868. This extension provides taxpayers with extra time to file their tax returns. However, taxpayers must still file estimated taxes by the April 15 deadline. If the October deadline comes and goes, you may wonder what happens if you don’t file on time. Read on to learn what will happen if you don’t submit your return by October 15.
Are You Getting A Tax Refund?
If you’re getting a tax refund, and miss both deadlines to file taxes, likely nothing will happen. Instead, the IRS will probably deduct any interest and penalties you owe from the refund. However, it’s your responsibility to file and claim that refund if you want it.
You should not purposely neglect to file your taxes. The IRS will not go above and beyond to remind you to submit if it owes you a refund. It doesn’t care that you’re lending it more money than you should. However, if you do want your refund, you have three years to file to collect it. Also, make sure to submit next year’s return on time if you don’t want the IRS holding that tax refund. The IRS relies on taxpayers to file necessary returns if they want their tax refund.
What If I Owe The IRS Money?
If you miss the October 15 deadline and owe IRS back taxes, you can get yourself in deeper trouble. Remember that the IRS receives the same income statements that you do. Therefore, the IRS has access to, including:
These income statements verify how much income you have earned during the year. Additionally, the IRS will know if you fail to file by April 15 or October 15 deadline.
If you don’t file, the IRS will compile a substitute return for you. After that, they will notify you about how much taxes you owe to the federal government. It’s important to note that the IRS won’t consider any exemptions or deductions when submitting your substitute return. It’s your job to include that information on your tax return.
What Happens after the IRS Submits A Substitute Return?
After the IRS notifies you of a substitute return, they will begin collection activity against you. Collection activities can include levying and seizing your assets. Your assets that the IRS can claim control over include:
- Bank account
- Retirement savings
- Real estate
- Secondary car or home
- Life insurance policies
How will I know if the IRS is going to seize my assets?
If the IRS is going to take a collection action out against you, they must first notify you. You will first receive a notification in writing regarding the IRS’ intent to seize or levy your assets. The government gives you up to 30 days to dispute the notice or resolve your debt to avoid it. If you want to protect the assets you own, do not ignore written warnings from the IRS.
You should file and pay your taxes as soon as possible after missing the October 15 deadline. If you can’t pay back taxes, there are other options for resolving your debt with the IRS. The best thing to do will be to consult a tax relief specialist.
What if I can’t pay what I owe?
If you can’t pay back taxes to the IRS in one lump sum, take advantage of a payment option available. For example, if you owe the IRS $25,000 or less, you can be eligible for the Fresh Start Program. The Fresh Start program allows you to set up an Installment Agreement, during which you pay an affordable monthly amount. To determine your monthly payments, the IRS will take into account your income and what you owe. Payments will be affordable so you can make them on top. Also, the payments will need to be automatically withdrawn from your bank account each month.
Are there other tax relief options available?
If you can’t possibly do an Instalment Agreement, you can claim financial hardship. Working with a tax resolution expert is your best bet when attempting to claim financial hardship. You must provide evidence to the IRS that paying back taxes would create extreme financial hardship for your family. If the IRS approves your financial hardship claim, they will hold off on collecting what you owe.
Another tax relief option is an Offer in Compromise. An Offer in Compromise allows you to make a realistic offer to settle back taxes for a lower amount. Platinum Tax Defenders are successful at negotiating Offer in Compromise deals with the IRS. The Platinum team recently got a client’s debt down from over $140,000 to just $100. If your Offer in Compromise is accepted, you can pay off what you owe for less than the actual amount.
Can I get rid of tax penalties?
Another tax relief option that may be possible for you is Penalty Abatement. A Penalty Abatement allows you to have penalties taken off your IRS tax debt. Having penalties removed makes it easier for you to pay off what you owe. Attempting to tax resolution deals with the IRS is more comfortable with a tax relief expert. A tax resolution expert will know all the ins and outs of the IRS. Additionally, a tax relief professional will be able to negotiate with the IRS on your behalf.
Get Help From A Tax Relief Professional
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.