Taxpayers Options for Missed Filing

The IRS has outlined options for taxpayers who missed the April deadline to file their 2023 federal income tax return. These options include payment programs and penalty relief for those who qualify.

Paying owed amounts as soon as possible will minimize penalty and interest charges, with the current interest rate for unpaid taxes at 8%, compounded daily.

Late-filing penalties are 5% per month, up to a maximum of 25%.

If a return is filed more than 60 days late, the minimum penalty is either $485 or 100% of the unpaid tax.

Taxpayers can reduce penalties and interest charges by paying their taxes electronically. Filing and paying promptly can lessen penalties and interest. Those who receive a penalty notice should carefully read it and follow the instructions for requesting relief. Taxpayers who have filed and paid on time for the past three years may qualify for penalty abatement. The IRS offers various payment options for those who owe taxes, including online short-term and long-term payment plans. While interest and late-payment penalties will continue to accrue, the failure-to-pay penalty is reduced by half when an installment agreement is in effect.’

If you would like to read more about this, please visit Tax Notes and read their article.

We are here to assist with any tax-related questions you may have. Please give us a call, and we will find the best way to meet your needs!