There could be many reasons that Tax Filing could get delayed. Maybe you accidentally miss a line or an entire firm, maybe the employer’s number did not match, or maybe you claimed a credit that the IRS take long to keep a check. However, the most common reason is that your tax refund is delayed that you filed a paper return. But no matter the reason, you should still file your tax after a delay.
Firstly, it is crucial to know how long it takes IRS to Process a Tax Refund:
IRS issues a refund of 21 days. If the person fills up electronically, the IRS takes up to 3 days, to accept the return. If you have to mail it, it might take three additional weeks. Also, it is crucial to have an estimation of one extra week, if you have requested a refund as a check rather than a deposit.
What if you missed the Tax Deadline?
The deadline to file a tax return has been passed due to various reasons. But the crucial point is you need to take action on a priority basis to avoid owing any more to the IRS. If you by any chance missed the tax deadline but are due to a refund, there is no penalty for that. The government still holds on to your money, interest-free, for a longer period. The person has a period of three years from the filing deadline to complete a return and has that refund. It is vital to keep in mind that you must not delay for too long. This is significantly a matter of fact if you get a Premium Tax Credit to help pay for insurance. If you have failed to file a tax return you risk the credit, so it is vital to take action as soon as possible.
Disadvantage: You will be charged with failure-to-file and failure to pay penalties for missing the deadline.
Advantage: You can still conveniently file the tax, but the sooner you take an action to file, the lesser penalties you will have to pay. Usually, the IRS charges them every month, but they can be prorated for a portion of a month. It is advisable to file as soon as possible to avoid unnecessary penalties that may incur if you keep delaying. Once, 60 days have been passed, you would incur an established minimum penalty that is the lesser of $205 or 100% of the unpaid tax you owe. So, the most convenient and advisable option is to get the tax refund files and make them a priority now.
The Consequences of unfiled returns:
It is illegal: The law expects you to file every year, and the government can levy civil penalties and even criminal penalties for failing to file the return.
Prepare to pay extra if you owe taxes: The penalty that is charged to file late is by 5% of the taxes you owe per month for the first five months up to 25% of the bill. The IRS also charges interest till the time you are not paying the balance.
You can lose the refund: If you are at all supposed to receive a refund with the late return, you could lose the refund depending on how late have you filed. If you want to get a refund, you need to file within three years of the due date.