What Happens if I File My Taxes Late 2022?

April 18th is just 10 days away. That’s 10 days left to pull together your deductions, any necessary documents, and file your return. Despite the massive amount of taxes the IRS is busy processing at the moment, they will notice if yours is late. What happens if you’re late filing your taxes this year? What can you do to encounter the least amount of penalties? Find out now.

Filing Taxes Late in 2022

Generally, the penalty for filing your taxes late is 5% of the taxes you owe for each month after the deadline (up to 5 months). Once you’re over 2-months late, the penalty is $435 or the taxes you owe. If you’re owed a tax refund, there is no penalty. However, you’ll miss out on your refund until you file.

If you don’t have the funds to cover your taxes or you owe a large amount, it’s all too easy to put it off. You might think you don’t have the money to pay it anyway, so why worry about it now? The fact of the matter is the sooner you address it, the better. You’ll have options such as setting up a payment plan with the IRS, or potentially paying your taxes with a credit card if the fees & interest work out to be lower than the IRS’ penalties. No matter what, don’t put your taxes on the back burner simply because you can’t afford to pay them at the moment. It’s only going to get harder next month.

What If You Know You’re Going to File Late?

If you know you’re going to file your taxes late—whether you’re waiting on necessary documents, or just aware you’ve already put it off too long—consider filing for an extension. You can file for an extension online and for free, so there’s not much of a downside to doing so. However, you must file for one by April 18th. This will push the deadline for your federal tax return all the way to October 17th. Keep in mind this is an extension of when you have to file the actual papers, not taxes due. So while filing an extension postpones the stress and complexity of your tax return, it doesn’t extend when they need your taxes paid. Depending on where you live, you might need to address state taxes differently. Contact a professional for the specifics on your state & local taxes.

What Can You Do to Minimize Penalties?

Pay your taxes as soon as you can. Either in full or by setting up a payment plan. While it might be difficult to pull together the money now, it’s only going to grow over the next few months.

Work With a Professional

Working with a CPA is going to give you the clearest plan for keeping your finances clean. We file tax returns each and every year from all ends of the spectrum. While your financial situation is unique, it’s not something our team is unprepared to handle. Talk to a CPA to figure out what method is going to bring you the most savings and the least amount of stress in filing your 2022 taxes.

About Us

Our Company specializes in accounting and tax preparation services for a wide variety of clients. We are specialize in tax return filling and tax planning for indivduals, Bookkeeping and financial statements for small business, Corporate tax return filling.
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