What to do if you missed your tax payment deadline: some tips

Some Americans may have missed the July 15 tax deadline this year. Therefore, the IRS may begin assessing late penalties and interest if prudent steps are not taken to resolve the situation. Writes about this Fox Business.

Photo: Shutterstock

“A common reason why people might miss the tax deadline is because they think they might owe money and don’t want to deal with it,” said Christina Taylor, head of tax operations at Credit Karma.

Delaying payment, however, will only make the problem worse.

Here are some steps you can take to minimize your fines if you are unable to pay taxes before July 15th.

Submit your return as soon as possible

Even if you missed the tax deadline, the sooner you file your return, the better.

This is because fines and interest will start to accumulate immediately.

On the subject: On diapers, sweets and the Internet: the strangest taxes in the US

If you file and pay your taxes after the due date, you will end up paying a hefty amount. First, you will be assessed a penalty for late filing of your return - this is 5% of the amount of unpaid taxes each month, up to a maximum of 25%. And the penalty for late payment of taxes is 0,5% of the amount you owe monthly, but not more than 25%. If both fines have to be paid, it will put a significant dent in your wallet. But if we exclude the fine for late filing of the declaration, then the amount of the fine is reduced to 0,5%.

Pay what you can

Even if you are unable to pay the entire tax bill, Taylor advises private individuals to pay what they can now, as a means of limiting accrued interest.

For example, a person who owes $ 1000 but paid $ 200 will receive a fine of $ 800 instead of the full $ 1000, said Taylor.

Keep in touch with the IRS

The IRS expects fewer people to pay taxes fully this year due to the financial consequences of a coronavirus outbreak, but you still need to tell the agency that you cannot pay your bill, Taylor recommends.

The agency is willing to develop repayment agreements, but being diligent about your situation will help you achieve the best results.

Ask for help

If you are unsure what to do or how to cope with your financial situation, consult or seek help from a qualified professional.

Read also on ForumDaily:

On diapers, sweets and the Internet: the strangest taxes in the US

Frightening prophecies: 6 ideas from dystopias embodied in reality

'Lemon Law': An incredibly useful rule in the US that many immigrants do not know about

The best and worst US cities to buy your first home

How much is happiness: scientists have found how income levels affect attitudes towards life

The price of luck: how people who received a huge inheritance quickly lost it

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.