If you filed an IRS Form 4868 and got that into the IRS by the April tax deadline, then you were likely granted an extension to file your taxes. Your extension is coming to an end and you must complete and file your return on or before October 15, 2019.
Hopefully you have used that extension time wisely to save up money owing back to the government or to get your ducks in a row. Regardless of why you needed the extension, the truth is that your tax forms are due. To avoid any additional costly penalties, work with a tax preparation firm, like our expert team at E&Y Agency, to get your tax forms completed and submitted on time. Any further delay will simply delay the inevitable and have costly consequences.
What Happens if You Miss the October Extension Deadline
Chances are that if you are expecting a refund, not much will happen if you continue to miss the deadlines set forth. Yes, you do have to eventually file your taxes, but the IR won’t be in such a rush to remind you that they owe you money. If you owe, however, that is a completely different story.
Remember that the IRS has access to all the income information that you were supplied – statements like W-2s, 1099s and 1098s. If you fail to provide your own tax return, the IRS will compile a substitute return for you and simply notify you with the results and amount owing. This substitute return will not take into consideration any exemptions or deductions to which you are entitled and will likely not work in your favour.
Instead we recommend completing your tax return, even if you can’t afford to pay the amount owing at this point, and get it into the IRS by the extension deadline. They will look more favorably upon you if you are doing your best to meet your responsibilities.
What Happens If You Can’t Pay
In many cases, failure to file on time is a direct result of not being able to pay the amount owed. Again, file your forms and then let an expert in tax help you come to an agreement with the IRS for payment. Generally, depending on your individual circumstances, you can apply for an extension to pay; agree to a payment plan over months or years; or even ask for a reduction in the amount owed under very special circumstances.
The last thing you want is for the IRS to begin collection activity against you. These activities can include levying and seizing your assets including your:
- Bank account
- Retirement savings
- Real estate
- Secondary car or home
- Life insurance policies
If you are overwhelmed by the entire process, connect with the experts in tax who can walk you through each step to ensure you are doing what you can to comply with your responsibilities.
About E&Y Agency
E&Y Insurance and Tax Agents are dedicated to giving our clients the products that provide quality protection and value pricing and the peace-of-mind in times of crisis. Our goal is to establish a successful partnership with our clients, our staff members, and our partner companies. Our success is measured by our clients choosing us because they believe in our ability to meet or exceed their expectations of price, service, and expertise. Call us now to talk about your insurance or tax needs!
