Tax Filing

Tax Filing to IRS After Deadline

No matter the nature of the business, tax filing is an essential requirement for the business to run. It needs to be appropriate as per the guidelines given by the IRS which amount to time in addition to other aspects. These can be troublesome if you are not looking to understand every technical aspect you can simply contact some expert. You can contact us too for this. Each and every violation can lead to problems with the IRS and create legal difficulty for the business. This article will discuss what to do if filing is late.

But first, we need to understand the deadline.

Tax Filing Deadline

The IRS gives a deadline annually to submit the last year’s tax as per the financial activity. This deadline is usually in mid-April every year. This deadline comes with an opportunity to have an extension or leads to penalties.

The deadline for fiscal year 2023 is April 15. Thus, by April 15 you need to file your taxes along with paying them or you need to pay the penalty. But at the same time, you get one of these options to manage your tax filling and paying:

  • An extension of 6 months
  • Refund from the previous fiscal year
  • penalty of 5 percent on tax
  • Due balance with the IRS
  • Payment options
  • Negotiate payments
  • Payment extension 

We will discuss these to guide you about your actions regarding being late regarding tax.

Filling extension

You can file for an extension for your business tax. It gives you an extension of 6 months which means the deadline pushes from April 15 to October 15. Moreover, it averts you possible penalty of 5 % on the standing tax which increases with time. To attain this, you need to file for an extension before the due date (mid-April).

Nature of extension

Given extension for tax filing only relates to filing returns. This means you have to pay the amount of tax in due time despite being unable to file your return. This necessitates that you estimate your tax amount and pay through form 4868. After you have paid an estimated amount to the IRS you have 6 months to file your return.

Need of extension

Your business can face penalties and failure to file if you do not file before the due time. Having an extension is the only way to avert it.

Consequences of not having an extension

Normally not having an extension can lead you to face penalties but there are other conditions which include getting a refund or due balance. Still, the best choice is to have an extension and pay tax appropriately. 

Getting a refund from the IRS

Among the ways to avert penalties despite failing to file is having a refund from the IRS. This is one of the effective ways to save your business from problems. But this only applies to the federal taxes and state taxes work differently. 

Still, it is best not to rely on this to justify negligence or mishandling due to various reasons. These include the fact that you will not get a refund unless you file for a return. Also, because not filling out your return can attract an audit from the IRS. Thus get your file returned soon or get an extension to avoid all that. You can check our previous blog to learn more about what happens after filing with the IRS.

Having due balance with the IRS

On the contrary to refund lies the due balance. This happens if your estimated tax payment is less than the actual amount. This comes into notice after you file your return and thus you need to file your tax return in due time or get an extension. Moreover, pay your estimated tax in a fitting amount. If that is not the case, you will end up with a late payment penalty which could amount to 0.5 percent as per the time passed.

Payment problems and options

You can find yourself in various problems relating to paying your taxes. To avoid these, you pick from the available options i.e., credit card, installment agreement, and offer in comprise, as per your comfort. Remember to pay them before the deadline or it will result in penalties and interests.

Pick the options wisely as each and every one comes with their different charges and conditions. You can use Form 9465 to require installment agreement payment. This will let you make payments monthly after you have filed tax returns.

Negotiating tax amounts with the IRS

Although you need to file tax in the full amount but there are conditions to accept tax in less amount. There are three conditions in which the IRS allows its offer to comprise the actual amount. These include doubt about the correct amount, you cannot pay the full amount, and when both the amount is correct & you can pay but could cripple the business.

Form 656 along with 433-A and 433-B are used to file for such a request. 

Payment extension

There is a possibility to get an extension on tax payment to avoid penalties but it requires certain sureties. Mainly you need to submit Form 1127 by the due date. Along with it, you need to declare a completion statement of all the assets and liabilities. Moreover, you need to state complete details of money transactions.

All of these should be able to demonstrate that paying as a whole would damage the business on a large scale. 

These are some of the options if you cannot follow the normal procedure to pay and file your tax before the deadline.


Tax is a crucial requirement to keep any business running. It has to be according to IRS guidelines which include a deadline. But if you cannot comply with it, it can lead to various problems such as penalties to avoid that you still get various options. Some of the key options are discussed in the article. But if you are still concerned and confused you can consult some tax experts. You can contact us to have our tax planning services.