If you extended your 1040 tax return to October 15th and then missed the extension deadline, you may be concerned about what happens to you.
If you are due a refund on the return, there is no penalty for missing the deadline. IRS penalties for late filing and late payment do not apply if you paid timely and do not owe anything. Just be careful- the IRS limit on refunds is 3 years from the due date, so you could lose your refund if you wait too long.
If you do end up owing money on the return, a couple things happen. First, you will be charged penalties and interest for failing to file timely and failing to pay timely. This is why even if you can’t pay your return, it is almost always better to file than to wait for when you can pay it. Filing now will at least limit the total amount of failure-to-file penalties that IRS can assess you.
If you wait a really long time to file, IRS may eventually prepare substitute returns on your behalf and try to collect on those. These returns usually have a much higher tax liability than a return you file, since the IRS does not give you any breaks when they prepare a return for you.
While missing the deadline can cost you a lot in penalties and interest, IRS does not normally put people in jail for being late with their taxes. If you get any phone calls from people threatening to jail you for not filing your taxes, these are probably scam artists. Do not give them any information.
Do you need your 1040 return prepared for 2018 or for prior years? Clergy Financial Resources can help. Visit our website at https://www.clergyfinancial.com/services/clergy-tax-preparation/ for more details about using our 1040 preparation services.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
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Maple Grove, MN 55369
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