Let’s be honest—tax season can sneak up on even the most organized business owner. Between managing operations, handling employees, and serving your customers, it’s easy to let the tax deadline pass by. But what happens if you miss it?

Whether you're a solo entrepreneur, run a growing startup, or manage a small business in the Motor City, knowing what to do after a missed tax deadline is key to minimizing penalties and stress.

Here’s what you need to know—and how to move forward.

Step One: Don’t Panic, But Act Quickly

Missing a tax deadline isn’t the end of the world. But the longer you wait, the more it can cost you.

If you didn’t file your federal tax return by the deadline (typically April 15), the IRS may charge two types of penalties:

• Failure-to-file penalty: This is usually 5% of the unpaid taxes for each month your return is late, up to 25%.
  
  
• Failure-to-pay penalty: This is generally 0.5% of the unpaid taxes per month, also up to 25%.
  
  

These penalties can add up fast. If your business is already operating on a tight budget, those fees can cut into cash flow—something no small business wants to deal with.

File as Soon as You Can

Even if you can’t pay the full amount you owe, filing your return ASAP can reduce your penalties. It’s the first step in demonstrating to the IRS that you’re taking responsibility and trying to make things right.

You may also qualify for Penalty Abatement or other relief if you have a history of on-time filings. A knowledgeable tax accountant near you can help you apply for this and improve your chances of approval.

Can You Still File an Extension?

Unfortunately, filing an extension after the tax deadline has passed won’t buy you more time. Tax extensions must be submitted before the deadline to be valid.

However, if you filed for an extension on time but missed the extended due date (usually October 15 for most businesses), the IRS will treat it the same as a late return. The same penalties apply.

Consider Payment Plans

If you owe money and can’t pay it all at once, you still have options. The IRS offers:

• Short-term payment plans (for debts under $100,000)
  
  
• Long-term installment agreements
  
  

These plans can keep your account in good standing while you pay off your balance over time. A professional from OPTIX Accounting can help you apply for the right plan and avoid missteps.

Get Help from a Pro

One of the biggest mistakes small business owners make is trying to fix late taxes alone. When you’re unsure of how to proceed—or worried you’ve made errors—it’s time to bring in support.

An accountant service for small businesses can:

• Review your financials and identify any deductions you may have missed
  
  
• Help you file quickly and correctly
  
  
• Negotiate with the IRS on your behalf
  
  
• Set you up with better systems so you don’t miss future deadlines
  
  

There’s no need to Google “tax accountant near me” and hope for the best—OPTIX offers experienced, local support right here in Detroit.

A Final Word: Prevention Is Key

Once you’ve dealt with your missed deadline, it’s time to make a plan for next year. Automating financial tracking, reviewing quarterly reports, and staying in touch with your accountant can go a long way toward avoiding future surprises.

OPTIX Can Help

Whether you're behind on taxes, need help filing correctly, or want year-round support, OPTIX offers professional services designed with Detroit small businesses in mind. From small business accounting and bookkeeping to individual and business tax filing, we’re here to help you get—and stay—on track. Book your consultation today.

‍