What To Do if You Missed
the April Tax Deadline
Monday, April 18, 2022, was the tax deadline
for most taxpayers to file their tax returns, but
if you haven't filed a 2021 tax return yet, it's
not too late. Here's what you need to do:
Carmel Minogue, CPA
First, gather any information related to income
and deductions for the tax years for which a return must be filed, then
call the office to set up an in-person or virtual appointment.
If you are owed money, then the sooner you file, the sooner you will
get your refund. If you owe taxes, file and pay as soon as you can,
which will stop the interest and penalties you owe.
If you owe money but cannot pay the IRS in full, pay as much as you
can when filing your tax return to minimize penalties and interest.
The IRS will work with taxpayers suffering financial hardship. If you
continue to ignore your tax bill, the IRS may take collection action.
Some taxpayers may have extra time to file their tax returns and pay
any taxes due. These include: individuals living or working in a federally declared disaster area, military service members and eligible
support personnel in combat zones, and U.S. citizens and resident
aliens who live and work outside the U.S. and Puerto Rico.
How To Make a Payment
There are several ways to make a payment on your taxes: credit
card, electronic funds transfer, check, money order, cashier's check,
or cash. If you pay your federal taxes using a major credit card or
debit card, there is no IRS fee for credit or debit card payments, but
processing companies may charge a convenience fee or flat fee. It
is important to review all your options. The interest rates on a loan
or credit card could be lower than the combination of penalties and
interest imposed by the Internal Revenue Code.
What To Do if You Can't Pay in Full
Taxpayers who cannot pay the full amount owed on a tax bill are encouraged to pay as much as possible. By paying as much as possible
now, the amount of interest and penalties owed will be less than if
you pay nothing at all. Based on individual circumstances, a taxpayer
could qualify for an extension of time to pay, an installment agreement, a temporary delay, or an offer in compromise. Don't hesitate to
call if you have questions about any of these options.
Direct Pay. For individuals, IRS Direct Pay is a fast and free way to
pay directly from your checking or savings account. Taxpayers who
need more time to pay can set up either a short-term payment extension or a monthly payment plan.
Payment Plans. Most people can set up a monthly payment plan or
installment agreement that gives them more time to pay. However,
penalties and interest will continue to be charged on the unpaid portion of the debt throughout the duration of the installment agreement/
payment plan. You should pay as much as possible before entering
into an installment agreement.
Taxpayers who have a history of filing and paying on time often qualify for penalty relief. A taxpayer generally qualifies if they have filed
and paid timely for the past three years and meet other requirements.
Your specific tax situation will determine which payment options are
available to you. Payment options include full payment, a short-term
payment plan (paying in 120 days or less), or a long-term payment
plan (installment agreement) (paying in more than 120 days). User
fees may apply depending on the type of installment plan you are approved for. A sole proprietor or independent contractor should apply
for a payment plan as an individual.
You may qualify to apply online if:
• Long-term payment plan (installment agreement): You owe
$50,000 or less in combined tax, penalties, and interest and filed all
• Short-term payment plan: You owe less than $100,000 in combined
tax, penalties, and interest.
Cash Payments. Individual taxpayers who do not have a bank account or credit card and need to pay their tax bill using cash are able
to make a cash payment at participating PayNearMe payment locations (places like 7-Eleven) in 44 states. Individuals wishing to take
advantage of this payment option should visit the IRS.gov payments
page, select the cash option in the other ways you can pay section,
and follow the instructions.
What Happens if You Don't File a Past Due Return
It's important to understand the ramifications of not filing a past due
return and the steps that the IRS will take. Taxpayers who continue
to not file a required return and fail to respond to IRS requests for a
return may be considered for various enforcement actions - including
substantial penalties and fees. For example, the failure-to-file penalty
is 5 percent of the tax owed for each month or part of a month that
a tax return is late. However, this penalty is reduced for any month
where the failure to pay penalty also applies. The basic failure-topay penalty rate is generally 0.5 percent of unpaid tax owed for each
month or part of a month.
Need Help Filing Your 2021 Tax Return?
If you haven't filed a tax return yet, don't delay. Call the office today
to schedule an appointment as soon as possible.
77 Southway Ave, Ste B
Lewiston, ID 83501 • (208) 743-7790
105 E Main Street
Pullman, WA 99163• (509) 332-1225