Hi,
I forgot to file/pay my taxes once I finished prepping them with TurboTax (yes I have recently learned there are better options out there).
I didn’t want to Google this so I’m posting anonymously here lol. What happens if I don’t pay them? Can I request an extension past tax day? I owe like $2100. Some of my contractor friends are like “fuck them, I’m not paying my taxes” but that seems like a bad choice for my credit score/life stuff…?
Plz be nice to me – I’m sensitive.
Location: Illinois
“Can I file an extension past tax day?” And more…
byu/Human_Cherry_1773 intax
Posted by Human_Cherry_1773
5 Comments
No, you cannot file an extension past tax day.
Because you did not file you are accruing a late filing penalty of 5% per month plus interest. It may be possible to abate that penalty if you have a good filing history.
My recommendation would be to file ASAP, even if you cannot pay. Then you can create a payment plan to pay over many years if you need to.
You cannot request an extension after the deadline, no (unless you’re covered by a disaster relief extension, or if you’re out of the country, both of which extend your deadline a bit). An extension wouldn’t help you much anyway – it gives you more time to file, but *not* more time to pay. You should file your return ASAP, even if you can’t pay what you owe, because the late filing penalty (5% per month) is *much* larger than the late payment penalty (0.5% per month, halved if you’re on a payment plan).
If you don’t pay, the IRS can garnish your wages, seize your bank accounts, and place a lien on your house and car (meaning they’ll take the sale proceeds if you sell them). And of course, they’ll keep any refund you’re due in the future. You also accrue interest every day that you don’t pay, and a 0.5%/month late penalty for each month you don’t pay (though the penalty does eventually stop accruing, and if you filed & paid on time for each of the previous three years, you can get the penalty waived).
Pay what you can when you can until the IRS sends you the letter saying “hey, you owe us $X” or until your return has processed. (Check for the latter in your IRS web account if you don’t get the letter after a while.) Then, you can sign up for a payment plan on the IRS website. The payment plan prevents the IRS from taking collections actions and also reduces the late payment penalty.
Also, adjust your withholding so that you don’t owe again this year.
Did you submit an extension of time to file on or before April 15th?
you can pay money to the IRS at any time, and making a payment now will reduce any interest that’s accruing on the balance due
but your “extension” won’t be timely and any implications of that can’t be eliminated
Too late for an extension. Just file it now.
If you can’t pay, you go on a payment plan.
Make a partial payment now if you can. Then wait for the return to be processed and you get your first bill in the mail. Then go online and set up a payment plan.
https://www.irs.gov/payments/direct-pay-with-bank-account
Pay anything you can afford. Any amount helps.
https://www.irs.gov/payments/online-payment-agreement-application
Owing the IRS does not affect your credit score. As long as you pay something, and don’t ignore any notices, you will be fine.