So sorry to hear about your health issues. First, do know that the penalty for late filing and late paying is a percentage of the balance due - so if when you are able to file your tax return you are in a refund position, there will be no interest or penalties for filing late.
If you do file the return late and the return shows a balance due, the IRS will assess penalties for failure to file on time. The IRS does allow for a "First Time Penalty Abatement" program.
You may qualify for First Time Abate for a penalty if you have a history of good tax compliance. You are considered having a good tax compliance history if you:
- Filed the same return type, if required, for the past 3 tax years before the tax year you received the penalty
- Didn't receive any penalties during the prior 3 years, or any penalty was removed for an acceptable reason other than First Time Abate.
Even if you don't meet this rule, it would not hurt to contact the IRS and explain your specific situation to ask for abatement of any penalties assessed.
Finally, you may want to consider hiring a qualified tax preparer to take this burden off your plate. Although it may cost a little more than self-prepared, it may be worth it to allow you to focus on the more important issues at hand such as your health.
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