| You should file as soon as possible, as those who owe taxes are subject to penalties and interest for late filing and late payment.
The penalties and interest apply to any taxes owed after April 18. Interest and penalties will continue to accrue until the balance is paid in full. If you can’t pay what’s due you should still file as the failure to file penalty is 10 times that of the failure to pay penalty. The penalty for failure to file is 5% per month, while the failure to pay penalty is only .05% per month. Those who can’t pay may be eligible for payment options such as a self-serve installment agreement or other relief options for those under financial stress. Those who aren’t required to file may want to review their tax documents to see if any federal income tax was withheld from their pay, as they may be entitled to a refund. Low-income couples and individuals’ way be entitled to refundable tax credits like the Earned Income Tax Credit and Child Tax Credit. These credits could mean a refund even if you paid in not tax. If you filed and are expecting a refund can track their refund status using the IRS’ Where’s My Refund? tool. |