Beyond the Deadline: What To Know About Filing Your Taxes
For most individuals, the federal income tax return is due April 15. If that date falls on a weekend or holiday, the deadline moves to the next business day. Businesses have different deadlines based on their formal structure.
If you need more time to file, you can request an automatic extension by submitting Form 4868 by the original due date. An extension gives you additional time to file but not additional time to pay. To avoid penalties and interest, you should pay any tax owed by the original deadline.
If you owe more than you can pay by the due date, you may request additional time to pay. Short-term payment plans of up to 180 days may be available without a user fee, though interest and penalties will continue to accrue. Longer-term installment agreements are also available, and some taxpayers may qualify for an offer in compromise.
Special deadline extensions apply in limited circumstances. Taxpayers serving in a combat zone or a contingency operation generally have at least 180 days after leaving the area to file and pay. Those affected by a presidentially declared disaster or certain acts of terrorism or military actions may receive additional time, depending on the specific relief granted.
Filing late or not at all
If you have not filed your required return for the current year or for prior years, file it as soon as possible — even if you cannot pay the full amount owed. Past-due returns are typically filed in the same manner as current-year returns, but the required filing method and address may differ depending on the tax year and whether the return can be e-filed. Filing reduces the failure-to-file penalty; however, interest and the failure-to-pay penalty generally continue to accrue until the tax is paid. Filing within three years of the original due date also allows you to try to claim refunds from withheld or estimated taxes. The same three-year rule applies to certain credits, including the earned income credit.
Failing to file can result in losing a refund. If IRS records show past-due returns, the IRS may withhold any current refund until you file the missing return(s). In some cases, the IRS may file a substitute return on your behalf. A substitute return prepared by the IRS generally does not include deductions, credits or filing statuses you may be entitled to claim. The IRS will issue a Notice of Deficiency before assessing the proposed tax.
Even if the IRS files a substitute return, it is usually in your best interest to file your own return to ensure the correct income, deductions and credits are reported. If your income information is incorrect, include corrected forms when you file so the IRS can adjust your account.
Additional consequences
If you are self-employed and do not file your return, your self-employment income will not be reported to the Social Security Administration. As a result, you may not receive credit toward Social Security retirement or disability benefits.
Unfiled returns can also delay loan approvals. Lenders and financial institutions often require copies of filed tax returns when you apply for a mortgage, refinance a home, seek business financing or apply for certain types of federal student aid.
For more information about filing deadlines and tax calendars, see IRS Publication 509, “Tax Calendars.”
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