Missed the Extension Tax Deadline? Here’s What to Do
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The extension deadline to file your 1040 individual tax return and/or your 1120 C corporation tax return was Tuesday, October 15th. Now that we are a couple days past the due date, you may have realized you forgot to file your tax return, or even worse, you haven’t paid your tax obligation. If this is the case for you, we have some suggestions of what you should do.
Here’s the good news: it’s possible you automatically have another extension to file. If you reside in a federally declared disaster area in Texas, you have additional time to file and pay certain tax liabilities, depending on the county. Counties that were affected by the May Derecho have until November 1st to file and pay tax obligations incurred from April 26th forward. Meanwhile, if your county was affected by Hurricane Beryl, then your tax obligations from July 5th forward are extended until February 3rd, 2025. For a list of the Texas counties under these extensions, check out our latest Newsroom update.
A critical aspect to note here is that neither of these extensions apply towards the payment of your 2023 tax liability. This was due back on April 15th regardless of an extension. If you have not yet paid your tax balance, it is likely accruing a Failure to Pay penalty.
Luckily, there are ways to reduce or even waive your penalty altogether if you haven’t yet paid. If you have an otherwise clean tax record, you can ask the IRS for a first-time abate. In other cases, you can try providing reasonable causes, and it’ll be up to the IRS’s discretion if relief is granted. You can also apply for a payment plan if you are currently unable to pay your tax balance in full.
Whether you have a penalty and interest piling up behind your tax balance or not, it’s best to not wait to take action. Meet with a trusted tax professional to pay and file your 2023 tax return. Yes, even with an extra extension from the disaster declarations, it's best to get filing out of the way now. You don’t want to delay your 2023 tax return until 2025, when you’ll also be preoccupied with your 2024 tax return.
If you don’t have a trusted tax pro to rely on for guidance, feel free to give XQ CPA a call. We are more than happy to help you with any tax concerns you may have.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
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Want to pay less taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.
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