Tax deadline 2018 has passed.
The April 18th tax deadline quickly passed. With the IRS encountering system difficulties, the tax deadline was extended from April 17th to the following day. Although tax deadline 2018 has passed, some Americans have yet to file their tax return.
If you’re one of many taxpayers who have questions about how to file a late 2017 tax return, keep reading!
Can I still e-file my 2017 tax return?
Luckily, you can still e-file your 2017 tax return until the e-file deadline and tax extension deadline, October 18th, 2018. Most importantly, in order to qualify for an extension, you must have filed by April 18th, the tax deadline. Keep in mind, this does not mean that can pay your tax due later.
The IRS charges penalties on unpaid taxes.
If you are due a refund, there is no penalty for filing your tax return late.
There are two penalties when missing the tax deadline your tax liability. First, you will be hit with the failure-to-file penalty if you did not file your tax return by the tax deadline. You will need to pay 5% of your tax liability per month or part of the month, up to a maximum of 25%. The second is the failure-to-pay penalty which is not paying your tax liability by the deadline. For every month or partial month that you owe the IRS money, you’ll be penalized 0.5% of the unpaid amount which could build up to the maximum of 25%. In the case that you are facing both penalties, the maximum amount for those two penalties per month is 5 percent.
Regardless of an extension or not, if you have a tax liability, you MUST have paid it by April 18th, 2018. In other words, a tax extension asks how much you estimate that you owe to the IRS. That means at the end of the day, you are still paying the IRS your tax liability even if you are planning on filing later.
For more information on IRS penalties click here.
Were you unable to file your taxes?
If you have a reasonable cause as to why you could not file your tax return or pay your tax liability, you may receive penalty relief. However, if you have a lack of funds, it is not a reasonable cause for failing to file your return on time. On the other hand, it may justify your failure-to-pay penalty.
Reasonable causes would be:
- fire, casualty, natural disaster (or other disturbances)
- the inability to obtain your records
- death or serious illness
- unavoidable absence of a taxpayer/member of the taxpayer’s immediate family
Let’s say that the IRS considers granting you penalty relief. If they do, they will request information to question the validity of your reasonable cause. For instance, they will need to know the time frame of the event. Take into account that they will want to know how it affected your ability to finish/pay your taxes and how it interfered with your daily responsibilities. Lastly, they want to see if you made an effort to file your taxes. This means that they want to see what actions you took after the situation changed to file your taxes. As evidence of your reasonable cause, you will need documentation from the hospital, court, record of a natural disaster or other events with start and end dates.
RapidTax has your back.
You’re now aware that you can still e-file your return and of the possible penalties you might face. What are you waiting for? Start now by creating an account to file your 2017 taxes if you missed tax deadline 2018!
Tags: 2017 tax return, april 17, april 18, e-file. e-file tax return, failure to file, failure to pay, file 2017 taxes online, file online taxes, income tax rates, interest, IRS, IRS penalty, late taxes, penalties, reasonable cause, state tax return, state taxes, tax deadline, tax deadline 2018, tax deductions, tax extension, tax filing deadline, tax refund, tax refunds, who must fileThis entry was posted on Thursday, May 10th, 2018 at 4:37 pm and is filed under Late Taxes | Blog.