What to Do if You Fail to Pay Your Taxes on Time

Man and woman filing their taxes

It’s that time of the year when everyone is running around, trying to file their taxes before IRS starts imposing taxes on late filers. While filing your taxes early is decent, there are times when you cannot avoid late filing. If you are in a fix, the best way to get out without heavy fines is having a professional help you handle last-minute filing without compromising your financial status.

Sorenson & Company and other experts noted that an all round tax planning agency will not only help plan your tax filing, but can also bail out when you are short of time.

More Professionals Can File it Faster

If you cannot pay your due taxes on time due to accounting complications, having more brains on the case might speed things up. Note that even if you miss the deadline, your tax due penalties continue accruing as time goes by. Hence, the need to hurry things up and clear everything before it is too late.

Help You File for a Time Extension

When meeting the deadline is impossible, the IRS can still give an additional 60 to 120 days if you use the Online Payment Agreement Application or call the IRS on 1-800-829-1040. This time extension clause might not be as straightforward as it seems, so you might need professional help to convince the IRS that you need the extension and cut down on the late payment penalties.

The late payment taxes penalties are applied at a 0.5% of the unpaid taxes per month. This will go up to a maximum 25%. While the percentage looks small, it could be a tangible amount especially if your due taxes are hefty. The IRS can waiver the late payment if you can come up with a reasonable cause as to why you couldn’t make the payment in time.

A tax planning and filing agency will help you tie up any loose ends as soon as possible to keep the penalty at the bare minimum and help you present your reasons for consideration in the most convincing way.