The tax deadline for 2021 was extended to May 17th, and many people are taking advantage of the extra time. However, be certain not to miss this extended deadline, as it is just as strict as the usual April 15th deadline in non-pandemic years. If you are not ready to file your returns, you can file for an extension, though you still need to pay your estimated tax liability on time.
If you are owed a refund, there is no penalty for filing your return late, though it can take significantly longer to receive your refund. If you owe taxes to the IRS, there can be costly consequences of failing to file or pay on time. The IRS can assess penalties for lateness, which can add up quickly the longer you wait to file.
If you fail to file a return at all, the IRS will eventually discover it. They can send you a bill with the taxes the agency assessed for you, which don’t take into consideration any deductions you might have claimed. If you ignore written communications from the IRS regarding taxes you owe, you might find the agency has placed a lien on your property. You also might be more likely to be audited if you fail to file or file late returns.
Even if you cannot afford your tax liability, it is still important to file your tax return and pay what you can. The penalties for late payments are lower than the penalties for late returns.
Consult with Our San Francisco Tax Lawyers for Assistance
If you need assistance with complex tax returns or tax-related matters, contact the San Francisco tax attorneys at SF Tax Counsel for assistance. Do not delay in addressing your tax requirements – call 415.318.3990 or contact us online to learn how our legal team can assist you.