Filing taxes late can create unnecessary financial stress. New York taxpayers face both federal and state consequences when deadlines are missed.
Understanding what happens when you file late allows you to take corrective action quickly.
Penalties for Filing Late
If you owe taxes and file late, penalties may apply, including:
- Failure to file penalty
- Failure to pay penalty
- Interest on unpaid balances
These charges increase the longer the balance remains unpaid.
What If You Are Owed a Refund
If you are due a refund, there is typically no penalty for filing late. However, refunds can be forfeited if a return is not filed within a certain timeframe.
Filing late also delays access to your refund.
Extensions and Late Filing Options
Taxpayers can request extensions, but an extension to file is not an extension to pay. Estimated taxes must still be paid by the original deadline to avoid penalties.
If you missed the deadline entirely, filing as soon as possible helps minimize penalties.
How to Fix a Late Filing Situation
Steps to take include:
- File all missing returns
- Pay as much as possible toward any balance
- Set up a payment plan if needed
BD Tax LLC assists clients with late filings and works to reduce penalties whenever possible.