Missed the tax deadline? Experts say file now to cut IRS penalties

If you missed the April 15 tax deadline, time is already running out on penalties and interest, but there are still steps you can take to reduce the damage.

Experts say taxpayers should file immediately, even if they can’t pay their entire bill, and pay as much as they can to avoid the heaviest penalties. Those who still owe can request a payment plan to manage the remaining balance.

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Another benefit of filing early is to lock in your return and protect your identity from fraudsters. (Michael Bocchieri/Getty Images)

The IRS says most applicants receive immediate approval or denial when they apply for a payment plan online.

“You can still file your return and at least eliminate the failure-to-file penalty, which can be up to 25% of any tax owed, with compound interest,” said Mark Steber, tax director at Jackson Hewitt Tax Services.

The IRS can impose several penalties, including failure to file, failure to pay and underpayment penalties, which are assessed separately and can accrue interest daily, Steber said.

He added that consulting a tax professional early on can help taxpayers navigate their options and potentially reduce the total cost.

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The IRS issues more than $400 billion in refunds each year, which means early filers can use that money sooner. (iStock)

“In many cases, the total cost – including taxes, penalties, interest and professional fees – ends up being more than if you had sought help sooner,” Steber said.

“The worst thing you can do is ignore the deadline,” he added. “Many people think they’ll deal with it later, but this can lead to escalating penalties and unnecessary financial risks.”

Filing a return as early as possible and exploring IRS payment options can help taxpayers regain control of their situation and minimize additional costs.

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The IRS still requires tax payment by April 15, even if you request an extension. (Kayla Bartkowski/Getty Images)

Steber said taxpayers should view reporting as part of a long-term financial strategy, not just a once-a-year obligation.

“Your tax return is one of your most important financial transactions each year,” he said. “Giving it the right attention can pay off over time. »