Here's what to do if you missed the federal tax deadline

Original Article:

Source: Link

The federal tax deadline was April 15 for most filers — and if you missed it, you should file your return and pay your balance as soon as possible, experts say. If you still owe taxes for 2023, you'll continue racking up penalties and interest until you file and pay your outstanding balance, according to the IRS. The late filing penalty is 5% of your unpaid balance per month or partial month, capped at 25% of your balance. The fee for failure to pay is 0.5% per month or partial month, with a maximum fee of 25% of unpaid taxes. Interest is based on the current rates. "The longer you wait to file, the bigger the risk of higher penalties and interest from the IRS and state," said Mark Steber, chief tax information officer at Jackson Hewitt. More from Personal Finance: It could be better to buy Series I bonds before May, experts say — here's why Most retirees don't delay Social Security benefits, study says. Experts say it pays to wait Biden makes a push for tuition-free community college. Here's why it may work this time However, that doesn't mean you should rush to file a return if you're still missing key information, like tax forms for your investments or other earnings. "A return needs to be completely accurate," Steber said. "No guessing or estimating." With missing information, the IRS could flag your tax return for audit, processing could be delayed or you could receive an agency notice. Still, "file an accurate return as soon as you're able," Steber suggested. Of course, some filers in disaster areas automatically have more time to file federal returns and pay taxes owed.