There are some taxpayers who missed the tax deadline and don’t know what to do. Most importantly, taxpayers should never do nothing. In the event that a taxpayer is not prepared to file, he or she should file for an extension as soon as possible. This ensures a taxpayer won’t be penalized for failure to file and gives them until October 16, 2023, to file his or her 2022 taxes. However, receiving an extension for filing does not entail an extension for paying.

Any outstanding taxes owed will be subject to interest and fees. If you don’t owe taxes and are due a refund, there’s no need to file an extension, but a taxpayer only has 3 years from the due date to file and receive his or her refund, otherwise, a taxpayer may lose out on any credits or refunds. To avoid penalties and fees, keep good records, gather documents early, and file taxes by the tax deadline every year.