Filing an income tax return is necessary for most professionals and business owners. Even people with passive sources of income, such as investment or rental properties, generally need to file income tax returns reconciling any estimated payments made to the Internal Revenue Service (IRS) with their actual income tax obligation.
The due date for federal income tax returns is April 15th or the next Monday every year. A variety of different challenging situations might leave people unable to file their returns in time. Medical emergencies, international travel and a host of other complications, such as employers failing to issue tax documents, could leave people incapable of filing their returns on time.
What option do taxpayers have if they cannot file a tax return by April 15th?
People can request an extension
The IRS recognizes that people may face challenging circumstances that interfere with the preparation of a tax return. Therefore, there are a variety of special rules in place that can help taxpayers in unusual situations.
If a taxpayer realizes before April 15th that they cannot prepare their income tax return in time, they can submit a request to the IRS for an extension. The IRS grants certain taxpayers who communicate ahead of time an extra six months to prepare an income tax return.
Those dealing with challenging personal circumstances can handle those matters, gather the documentation they need and then file their income tax returns without facing secondary consequences. The October 15th deadline is a firm deadline. Therefore, those who have requested an extension must be assertive about ensuring that they prepare and submit the return before the deadline passes.
What if filers miss both deadlines?
Extensive medical challenges, spouses who refuse to cooperate during divorce and other complications could prevent people from meeting the October 15th deadline after requesting an extension. In some cases, taxpayers may eventually realize that they have missed both deadlines.
It may be possible to file past-due tax returns with the IRS well after the filing deadline. However, penalties and interest are likely to have accrued, which may mean that the taxpayer has a larger financial obligation to meet.
Those in need of assistance as they request an extension, prepare an income return or negotiate with the IRS often require assistance, and that’s okay. Securing legal support from an attorney familiar with tax law can help people limit the challenges they face after missing an income tax return deadline.