Did you forget to file your taxes last year? Don’t panic! You can still file, but there are a few things you need to know.
First, you may face penalties and interest for failing to file and pay your taxes on time. The sooner you file and pay, the less you’ll owe in penalties and interest.
Gather all the documents you’ll need to file, including your W-2s, 1099s, and any other income or deduction information.
If you’re due a refund, you won’t face a penalty for filing late. But if you owe taxes, you’ll be charged a penalty of 5% per month on the unpaid balance, up to a maximum of 25%.
If you can’t pay the full amount you owe, don’t ignore it. You can set up a payment plan with the IRS or consider other options such as an Offer in Compromise or an installment agreement.
Don’t let forgetting to file your taxes last year stress you out. By taking action as soon as possible, you can minimize the penalties and interest you’ll owe, and get back on track with your taxes.