What happens if I miss Oct. 15th for my tax filing extension?

Question

I filed for a tax filing extension until Oct. 15th for the first time ever. However, as I'm getting closer to the date I'm finding I might have trouble getting everything compiled for my accountant. Is there another extension that I can file? What happens if I miss the Oct. 15th date?

Answer 1

Here from IRS Publication 17: Your Individual Income Tax.

"Penalties
The law provides penalties for failure to file returns or pay taxes as required.

Civil Penalties
If you do not file your return and pay your tax by the due date, you may have to pay a penalty. You may also have to pay a penalty if you substantially understate your tax, understate a reportable transaction, file a frivolous return, or fail to supply your SSN or individual taxpayer identification number. If you provide fraudulent information on your return, you may have to pay a civil fraud penalty.

Filing late. Failure-to-file
If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. The penalty is based on the tax not paid by the due date (without regard to extensions).

Fraud.
If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%.

Return over 60 days late.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $100 or 100% of the unpaid tax.

Exception.
You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect."

So if you read it carefully, every where the penalty is percentage of the tax due.

Answer 2

There used to be a 2nd extension that you could file, but that was when the first extension was only for 4 months. Now that the extension is for 6 months, the IRS did away with the 2nd extension. As far as what happens if you miss the October 15th date, you will pretty much have to file a paper return instead of e-filing. Other than that, if you have a refund coming to you, you have 3 years from the due date (or 3 years from an extension if you filed one) to file a return and get the refund. If you owe, your extension is not valid and you'll owe interest and penalties on the tax from the original filing due date. Best advice is to get your information together as soon as possible and get it to your accountant.

Answer 3

its a good idea to get it done by the 15th but since you don't owe there probably would not be any adverse effects however, that doesn't mean there would not be a penalty for late filing, altho it is based on your tax liability, IRS can assess a penalty anyway if your tax person cannot do it, find someone else you didn't know that was the deadline? did you file the extension in April, or did your tax person do it without your knowledge? all the more reason he should get busy and prepare your return

Answer 4

You can file for an additional extension, but you'd have to have a very good reason. This first one is automatically granted - the additional one for after Oct 15 isn't automatic.

An extension just is for filing, not for paying. So if you owe money, it's been overdue since the April original due date.

Answer 5

There is not another extension you can request. What I tell my clients in your situation is to get the return done as soon as possible. Keep in mind that penalty and interest is calculated on the amount due, therefore, if you don't owe anything or are getting a refund, there won't be any consequences. If you owe more, you will get a notice from the IRS. Pay the amount and request for abatement if you have a valid reason for being late.

Answer 6

Penalties and interest. Is it for both state and federal that you extended, P&I would occur on both.

I work in the tax field in my state, and many folks assume that the extension to file also means an extension to pay - which it does NOT. Each state may be different, so contact your state tax commission to find out the rules they have.

I would also suggest keeping in contact with state and federal tax agencies with your status. They can help you with information and tend to be a bit better to work with when you come forward with info than they are when they have to seek you out.

Answer 7

Send a check for any amount you guesstimate you will owe then send an explanation with the return. If you pay too much, have it applied to 2007 estimated tax.

Answer 8

Well, if you owe money, you will be penalized with late fees. I think they were pretty fair with me and let me set up a payment plan. So, don't worry- the IRS isn't going to come knocking on your door with leg irons. :-)

YOu can also call the IRS and explain the situation to them. The number is 1-800-829-0922