Do Not Miss the Tax Deadline
April 15th is a blessing or a curse for millions of Americans. The annual tax deadline means one of two things, a refund, or bill from great Uncle Sam. Taxpayers who anticipate a positive result are more than willing to file in January, with the hopes that money will soon be in their bank accounts. For many others, however, the tendency to put tax season on the backburner is commonplace. After all, who is eager to receive a bill from the government?
The Penalty for Late Tax Filings
In all fairness, it is legal to file after the deadline, but it is worth understanding the consequences. Make no mistake; tax evasion is a criminal offense punishable by hefty fines and jail time depending on the extent of unreported income. Such actions are not restricted to private individuals and small business owners either, as large corporations commit a majority of tax fraud. Given the millions of dollars the government misses, it is no surprise that tax evasion is not taken lightly.
Fortunately, late filings are a different story altogether. For the average taxpayer though, even a 5-10% fee is worth avoiding. The first thing to do to avoid penalties is request an extension. You can fill out an electronic form on the IRS’ website, and should hear back within a day.
If your request is granted, which chances are it will be, you will have an additional six months to file. The new deadline will be October 15, but please note that the IRS does require payment for taxes due on the original date. If you are unsure of what you owe, consult with Burch’s Bookkeeping today to get a rough estimate. Pay the amount you can now and the remainder of the balance within the six-month period.
There are two kinds of penalties the IRS assesses, failure to file (FTF) and failure to pay (FTP), and you can be charged both if not careful. Filing late incurs a 5-25% penalty of taxes due and paying late incurs .5-25%, depending on how much you owe and how long you wait.
Thus, it is in your best interest to file before April 15 or at the very least request an extension. Let the specialists at Burches Bookkeeping take the burden of tax season away. Hurry up before it is too late!