There is a time and place for everything…including your 2014 tax return.
The 2015 tax season was that time and place. Although you’re a little late, you can still file your 2014 taxes. You just won’t be able to electronically file (e-file) it.
IRS e-file dates and deadlines
Each December, the IRS comes out with the e-file start dates and deadlines for that year’s upcoming tax season. For 2014 returns, those dates fell between January and October of 2015. The IRS promptly closes their e-filing system after that.
Can I still submit my 2014 taxes to the IRS?
Yes! You can and you should. You’ll need to sign and mail your tax return to the IRS instead of just submitting it online like you may be used to. The preparation process that you typically follow can remain the same. Not sure where to prepare your return? We can help you with that on RapidTax! It’s quick and easy; even for late tax returns. All you need to do is create an account with a unique username and password. Then begin entering your tax information into our user-friendly application. It’s even free to try with several pricing packages to fit your tax situation once you enter all of your information.
Can I still claim a 2014 tax refund?
That’s a yes! The IRS has a Statute of Limitations in place that allows taxpayers three years from the original due date to claim a refund. That means you can claim your 2014 IRS refund until April 2018. Keep in mind that it will take a bit longer than usual to receive that refund in the mail since it is a prior year return now. It can take the IRS about 6 weeks to process an accurately completed late tax return.
What penalties am I facing for a 2014 tax due amount?
There are currently two penalties when it comes to late filing a tax return with the IRS.
The failure-to-pay penalty accrues for paying your tax due past the deadline. It is 0.5% per month of your unpaid taxes. This begins to accrue the day after your taxes are due to the IRS and applies for each month (or part of a month) that they remain unpaid. It will not add up to be more than 25% of your unpaid tax amount due.
The failure-to file penalty accrues for filing your tax return past the deadline. It is 5% of the unpaid taxes for each month (or part of a month) that your tax return is late. Based on the percentage, this penalty can add up to be ten times more than the failure-to-pay penalty. What’s this mean for you? If you’re not filing because you know you won’t be able to pay, think again. You should file now and face the smaller of the two penalty fees!
What’s the takeaway?
Here’s the thing. You should always file your tax return; late or not, refund or not. Taxes help you out with loan qualifications, rental agreements, and sometimes even your credit. If you’re behind, that’s okay. But why not takes small steps to get back on track?