There’s been some confusion over what happens if you don’t file your taxes by April 15th. Although the IRS doesn’t come knocking on your door, they do expect for every taxpayer to file their taxes on time.
For those who owed and were unable to meet the deadline, you were supposed to request an extension through the IRS. But what if you missed the deadline and the IRS owes YOU a refund?
If you know for sure that you are receiving a refund, there is no penalty for filing late and no extension is needed. However, by filing after the deadline, you do run the risk of being penalized if you miscalculated and actually owe the IRS money. For this tax year, the penalty for not filing on time is 5% per month up to a maximum of 25% of the balance due. Additionally, failing to pay results in interest on the amount you didn’t pay by the April 15th deadline.
If you are one of the 80% of taxpayers who will be receiving a refund, file early next year in order to receive your refund as soon as possible. Keep in mind that after 3 years you can no longer claim this money. According to the IRS, an approximated 900,000 taxpayers lost out on $760 million worth of refunds from 2011. Don’t let your hard earned money go unclaimed!
Stop by your local Liberty Tax® to have your taxes prepared or to get a free estimate. Use our office locator or call 1-866-871-1040 to find an office nearest you.
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.