Q: I missed the tax deadline and didn’t file an extension – how much trouble am I in? What should I do now?
A: First, don’t panic! In many cases, the outcome is better than people expect. The most important step is simple: File your return as soon as possible.
If you’re owed a refund, there’s no penalty for filing late. The late filing penalty applies only when taxes are owed. Many people who file late still get their full refund – just don’t wait too long, as refunds can be lost if not claimed within three years.
If you do owe taxes, filing sooner helps limit penalties. Penalties and interest can apply, but filing now helps keep them from growing.
Filing starts the clock. Once you file, it begins the statute period – generally three years – that limits how long the IRS has to review your return.
In some cases, the IRS pays interest on delayed refunds, depending on timing.
The bottom line: Missing the deadline isn’t ideal – but it’s not the end of the world. Filing sooner rather than later can limit issues, start important timelines and in many cases still result in a full refund.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.
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