Facing Your Tax Debt After the October 15 Filing Extension Deadline

When you filed for an extension on filing your income tax return back in April, the new deadline, October 15, seemed like a lifetime away.  You have been filing for extensions on your tax returns almost every year for as long as you can remember, and every year, you manage to put together the money to pay your taxes by October 15.  There is so much going on in April; the school year is drawing to a close, and you are scrambling to find a summer job.  After spending the summer devoting yourself full-time to gig work, you finally have enough money to pay your taxes and then live on instant ramen noodles for a few weeks until your next paycheck comes in.  This summer was harder than most, though.  The October 15 deadline is here, and you are just as broke as you were in the spring; the last thing you want to do is sit down with an accountant and face reality about your finances.  If you still cannot pay your taxes by October 15, you are not alone, but the worst thing you can do is to ignore them.  For help addressing your tax debt, even if you missed the October 15 filing extension deadline, contact a Miami debt lawyer.

The IRS Accepts Partial Payments

When you file for an extension on your tax return, you get an extension until October 15 to file a tax return and pay the taxes you owe.  What happens if you don’t pay?  You incur interest and fees, much as you would if you had not filed for the extension and simply not filed a tax return and not paid.  It is best to file a tax return by October 15 and pay what you can, even if it is only a little bit.  Just like with credit card debt or any other kind of debt, the interest only accrues on the amounts you have not paid.  It is worthwhile to pay a few dollars toward your tax debt each month, even if it is the only debt you can afford to pay down.

Disaster-Related Tax Relief

Floridians could use some good news right now, especially about money.  If you live in an area affected by Hurricane Debby, Helene, or Milton, you qualify for an automatic extension of the deadline on some of your tax obligations.  The new deadlines are in 2025, and they are slightly different for each hurricane, so check the IRS website to find out more details.

Paying Down Your Tax Debt Is Less Expensive Than Trying to Discharge It in Bankruptcy

Tax debts generally fall under the non-dischargeable category in bankruptcy cases, since the creditor is a government entity.  In some cases, it is possible to discharge tax obligations that are more than six years overdue, if you have filed all the necessary tax returns.

Work With a Debt Lawyer About Tax Debt

A South Florida debt lawyer can help you address tax debts that have been following you around for multiple seasons.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Sources:

cnbc.com/2024/10/15/tax-extension-deadline.html

irs.gov/newsroom/around-the-nation-florida