OK, your 2014 taxes are late.
The April 15th deadline has come and gone and you have yet to file your 2014 tax return. Take a deep breath. The good thing is you can still file your late 2014 taxes online. However, you may be subject to one or more IRS penalties.
What penalties to expect
There are two penalty fees that the IRS has in place that you may be subject to.
Failure-to-file: this equals out to be 5% of your unpaid taxes for each month or part of a month that a tax return is past the April 15 deadline. This fee caps off at 25% of your unpaid tax.
There are two instances when this could apply to you:
- You owe tax and didn’t file your tax return or an extension of the time to file by April 15th, or
- You owe tax and still don’t file your tax return by the October 15th tax extension deadline
Failure-to-pay: this works out to be 0.5% of your unpaid tax per month or part of a month and begins to accrue the day after taxes are due in April. This fee caps also off at 25% of your unpaid tax.
To be liable for this, you must owe tax and:
- not have filed your tax return or extension by April 15th, or
- have filed an extension for your current year tax return by April 15th deadline but paid less than 90% of the tax amount due, or
- have filed an extension for your current year tax return by April 15th but didn’t pay any of the tax amount due
What to do now
Don’t let the tax you owe or the penalty fees scare you out of filing your tax return all together. When you file with Priortax, we take the weight off your shoulders by providing a Tax Resolution service to you.
What this means is that if you owe a hefty amount to the IRS, we can break that down for you so that your wallet isn’t hit all at once. We will also work with the IRS to diminish remaining penalty fees you owe them. To find out more about this service, you can contact us via email, call 855-Tax-Late or check out our tax resolution page.
Can I still claim a refund?
Unfortunately, due to the statute of limitations, you can no longer claim your 2014 refund. The last day to claim your refund was April 15, 2018. However, you should still file your tax return in case the IRS wants to hold any future tax refunds due to unfiled taxes.
You can easily get started on filing your paper return with us by creating an account, entering your tax information, and submitting your return. Then, you will be able to print your return to mail to the IRS. (The electronic filing deadline has passed, so you’re now required to paper file your return.)
It’s that easy.
Image via Ryan McGuire on Gratisography