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I have failed to pay taxes on time – What are the consequences I may have to face?

Ogden Tahath 7 months ago 2 min read

When it comes to taxes, deadlines are important. If you are not able to pay taxes within the deadline, no matter what the reason is, the IRS will impose penalties on you. If you feel burdened by all these tasks, you can get help from a tax professional or CPA firm in Colorado, or else the penalties you may have to face can add to your financial stress. If you have not paid taxes on time, you need to keep the following mentioned points in mind.

Firstly, you have missed the filing date, and you have to pay a penalty to the IRS. But this may happen, and if you are all panicky, calm down a bit. Take a deep breath, and get in touch with a tax professional; half of your worries will be over here.

Secondly, talking about the amount of penalties depends on two most important factors. The first deciding factor is how much money you would have to give to the IRS. Secondly, you may have been late by just two days. Or, you may be delayed by one month. This duration plays a role in deciding on the penalties.

Some ways to avoid or reduce penalties

Yes, there are some ways by which you can avoid paying penalties to the IRS. As a layman, it may be difficult for you to make an informed decision at this time. So, it is always wise to get in touch with a tax professional. Now, let’s have a look at some useful tips.

Firstly, you can file for a tax extension for the filing process. It is important to keep in mind that this tax extension can help you only with the filing, but you need to make the tax payments on time.

Secondly, you may be going through some difficult times, and you can pay the taxes. In such a situation, you must at least complete the tax filing procedure. This will minimize the amount of penalties you owe to the IRS.
Thirdly, you need to give some time for the tax filing procedure. If you are too occupied with other important tasks, professional help is all you need. Even if you have missed the deadline, a tax professional can help you with some effective ways to skip paying large amounts of penalties to the IRS.