What to do if you’re late filing your taxes.

Are you late filing your taxes?

Is it because you completely forgot to file your taxes?  Or, did you also forget to file a tax extension?

Don’t worry; we’re going to get this fixed up for you.

Fortunately, this won’t be a long post because there isn’t a whole lot to do. You can have this problem solved by the end of today.

If you’re getting a refund…

If you know you’re getting a refund, the best thing to do is to complete your taxes as soon as possible.

You want that money, right?

You will lose your refund if you don’t complete your taxes within the “statute of limitations”. It will be considered a “donation” to the IRS.

Luckily, you have three years from the date of the original deadline of the tax return to claim your refund, or two years from the date the tax was actually paid, whichever is later.

Get your money back now by completing your taxes. Use it to pay off debt or take a vacation or something.

There’s no reason to let it go to the IRS. You earned it.

If you owe taxes…

Okay, so, here’s the thing about the government: they want your money.

The IRS will come after you and they will charge you more if they can.

They will charge you a late filing fee, and then interest on not paying.

The penalty is a 5% charge per month you are late paying. The maximum cap on this penalty is 25%.

Aside from that late fee, you will also have to pay interest. Currently, the IRS interest rate for underpayments is 3% annually.

Why are you late filing your taxes?

Procrastinating too much, coupled with a lack of organization, will cause someone to be late filing.

I put together this E-Z Accounting method you can try for your own finances.

Use that spreadsheet and those techniques to get your stuff in order so that it’s easier for you to file your taxes every year.

There’s no point in making it harder on yourself.

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