IRS Tips For Taxpayers Who Missed the Tax Filing Deadline

If you missed filing your personal tax return or your business taxes, it is normal to feel stressed. Many business owners in south Florida delay this process because navigating the complex US tax system can be overwhelming. However, ignoring the problem is the most expensive financial mistake you can make. The IRS imposes severe penalties for filing late.

Here is a 5-Step guide from Hispano Tax Service on what you should do right now to minimize the financial impact.

1. File Your Return As Soon As Possible (Even If You Cannot Pay)

A large percentage of people believe that if they do not have the money to pay their taxes, they simply shouldn’t file. This is not correct.

The IRS charges 2 separate penalties:

Failure-to-File Penalty: This is 5% of your unpaid taxes for each month your return is late.

Failure-to-Pay Penalty: This is only 0.5% of your unpaid taxes for each month you don’t pay.

The penalty for not filing is 10 times higher than the penalty for not paying. By filing your tax return immediately (W2 employee or 1099 independent contractor), you can stop the most expensive penalty from continue growing.

2. Pay What You Can Today

If you owe taxes, pay as much as you possibly can when you file your return. Every dollar you send to the IRS today reduces the principal balance that future interest and penalties are calculated on.

3. Beware of LLC and Corporate Penalties

Also known as “Per Partner Fees”.

For LLCs structured as a Partnership (Form 1065) or S-Corporations (Form 1120-S) in Florida, the tax deadline for is usually March 15 (not April). If you miss the deadline, the penalty is: $235 for each partner or shareholder, for every single month you are late (based on current rates for 2024-2026).

If you find yourself in this situation, you need to contact a corporate tax preparer immediately to request First-Time Penalty Abatement if you qualify.

4. Request an Installment Agreement

If your business suffered a slow season or you had personal emergencies and cannot pay the full tax bill, you can request a payment plan directly with the IRS.

If you owe less than $50,000, you can usually apply for an “Installment Agreement” that allows you to pay off the debt over 72 months. Setting this up officially prevents the IRS from freezing your business bank accounts or garnishing your wages.

5. Seek Certified IRS Representation

Have you already received an intimidating letter from the IRS (like a CP14 notice or an Intent to Levy)? Do not try to call the IRS on your own, especially if your business and personal finances are mixed together (a common issue for independent contractors).

At Hispano Tax Service, we have federally licensed tax practitioners (Enrolled Agents) who can speak directly to the IRS on your behalf and help you to put a stop to bank levies and wage garnishments. Moreover, we will negotiate a reduction of your tax debt based on the available avenues and the requirements you meet.

Do you have IRS issues to resolve this year?

Do not let an administrative mistake jeopardize the business and life you have worked so hard to build in the US. Our bilingual team at Hispano Tax Service fully understands the unique challenges faced by immigrants, contractors, and entrepreneurs in South Florida.