You Missed the April 18, 2022 Tax Deadline. What Now?

If you failed to file your income taxes by April 18, 2022, you are not alone. Forbes estimates that around seven million U.S. taxpayers fail to file their returns each year. But, this doesn’t mean that you are in the clear. Federal tax violations can lead to steep penalties—including criminal penalties in some cases.

So, what should you do if you are behind on your federal income tax obligations? While the Internal Revenue Service (IRS) states that, “[a]nyone who didn't file and owes tax should file a return as soon as they can and pay as much as they can,” taxpayers who are behind must be very careful when submitting late filings and partial payments to the IRS. US International Tax Advisors explains:

4 Options if You Missed the April 18, 2022 Tax Deadline

When you are behind on your federal income taxes, it is extremely important that you make an informed decision about how to move forward. If you aren’t careful, you could end up doing more harm than good. With this in mind, here are four potential options if you missed the April 18, 2022 tax deadline (depending on your individual circumstances, you may have other options as well):

1. File a Late Return

As the IRS notes, one option is to file a late return. If you have a valid reason for being late and your tax liability is nominal, then this might be your best option. But, the IRS may also decide that your late filing warrants further scrutiny—and this could lead to an IRS audit or tax fraud investigation.

2. Submit an Offer in Compromise

If you cannot afford to pay what you owe, then it may make sense to submit an offer in compromise (OIC). Not all taxpayers qualify, so you will want to speak with a Maryland IRS lawyer before pursuing this route. If you qualify, you will want to have your lawyer assist you with preparing your OIC and negotiate with the IRS on your behalf.

3. Apply for Penalty Relief

The IRS offers penalty relief to U.S. taxpayers in three primary scenarios: (i) failure to file based on “reasonable cause;” (ii) qualification for First Time Penalty Abatement; and, (iii) qualification for a statutory exception. Note, however, that you will remain liable for any interest owed on your delinquent tax liability.

4. Make a Voluntary Disclosure

If you do not have any other options available, you may need to consider making a voluntary disclosure. Voluntary disclosure is only an option for U.S. taxpayers who have “willfully” failed to meet their federal tax obligations, and taxpayers who pursue this option must be very careful to avoid triggering criminal prosecution.

Request an Appointment with US International Tax Advisors

If you need to explore your options for remedying a delinquent federal income tax filing, we encourage you to contact us promptly. You will want to take action before the IRS initiates an audit or investigation. To discuss your options with US International Tax Advisors, call 844-796-8565 or contact us confidentially online now.