Never Filed Your 2021 Tax Return? It’s Not Too Late to Submit It

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There’s still plenty of time to submit your return and get your refund. 

Filing a tax return is something most of us are supposed to do every year. But maybe life got in the way of you filing your 2021 tax return in 2022.

If that’s the case, worry not. There’s still time to submit that return to the IRS — and snag the tax refund that might go along with it.

There’s still time to file your 2021 taxes

Taxes are generally due on or around April 15, and each year, you’re filing taxes for the previous tax year. In other words, this year, you’re filing your 2022 taxes, and in 2022, people were filing their taxes for 2021.

One thing you should know is that the IRS gives you three years from when a given tax return is due to get it submitted. So let’s say you never submitted your 2021 tax return. That means you have three years from April 2022 to get that return in, leaving you with a final deadline of April of 2025. So in light of that, it’s definitely not too late to submit your 2021 taxes if you didn’t get around to filing them last year.

What happens when you’re late submitting your tax return?

The consequences of being late with a tax return depend on whether you owe money, or you’re owed money. If you’re due a refund, there’s no penalty. And why would there be?

By delaying your tax return filing, it means you’ve allowed the IRS to hang onto your money for a longer period of time. So why should the agency penalize you beyond that?

On the other hand, if you owe the IRS money, then there is a penalty for filing a tax return late. And unfortunately, it’s a steep one. The failure to file penalty is worth 5% of your unpaid tax bill for each month (or partial month) it goes unpaid, up to a total of 25% of what you owe.

On top of that, you’ll face interest and penalties for paying your actual tax bill late. The penalty there isn’t as steep as the failure to file penalty. But you will owe 0.5% of your unpaid tax bill per month or partial month your payment is late.

Get moving on that old tax return

Whether you owe the IRS money for 2021 or are due a refund, the sooner you get your old tax return done, the better. In fact, the average tax refund for 2021 tax returns was $3,121. That sum of cash could come in very handy if you’re struggling to cover your bills right now due to inflation, or if you owe money on credit cards that’s costing you a lot in interest.

But if you’re going to make an effort to get moving on your 2021 tax return, don’t neglect your 2022 return in the process. That return is due this April (April 18, to be precise). And if you’re due a refund for 2022, you’ll want to do what you can to snag that money as quickly as possible.

If you need help filing your taxes, the sooner you reach out, the better. Tax professionals tend to be busy during tax season in general, but they’re apt to be particularly swamped in late March and the first half of April as they find themselves up against the filing deadline. So the earlier on in the season you’re able to line up some help, the less difficulty you might encounter in finding someone to do your taxes for you.

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