It is problematic, if you miss your tax return deadline, however, this problem can be rectified. If you requested an extension to your filing deadline, you are not late. However, if you did not do this, you need to take immediate action to address the issue. Moreover, remember that while you received an extension, April 18 is still the due date for the payment.
In all likelihood, if you miss the tax return filing deadline, you will owe penalties and interest on the outstanding amount, so completing your yearly tax duties quicker will reduce the cost of your error. Possible costs include:
1. You will be charged interest on the amount you owe, beginning from April 19, 2017. Presently, the rate of interest is five percent for every month you miss, however it will not surpass twenty-five percent of your unpaid tax.
2. A couple of penalties apply: Firstly, the penalty for late filing is normally five percent of the tax due for every month, or some of the month, that the payment is late. This applies to five months. Should the return be over sixty days late, there's a minimum late filing penalty, which equates to the lesser of 100 percent of the tax or $135. Secondly, the penalty for late payment is half of one percent for every month or some of the month, for up to twenty-five percent of the outstanding tax amount from the return's due date until fully paid. This rate goes up to one percent, if the tax has not been paid after a few notices, and ten days after the Internal Revenue Service gives notice that it intends to seize or levy property.
You might be able to have all or some of your penalties waived by the IRS if you can provide a good excuse for missing the deadline and show that you had the best of intentions. Nonetheless, this does not happen often. Do not allow your failure to pay tax stop you from getting your return filed as quickly as possible. Organise a payment schedule with the Internal Revenue Service.
If you qualify for a tax rebate (for example, if too much tax was withheld from your salary, or you can claim a tax credit on the earned income), the Internal Revenue Service will not send you the money voluntarily. Instead, you need to file a return to claim your funds. Therefore, getting this done quicker will speed up the process of receiving your refund.
Even if you miss the deadline in April, you can send your return to the Internal Revenue Service electronically, up until October. Later submissions than this have to be sent by mail in paper format. Also, you can do free electronic filing with Turbo Tax or FreeFile.
Electronic filing increases the likelihood of receiving any refunds due quicker than sending a paper tax return. According to the Internal Revenue Service, ninety percent of electronically filed returns are processed within three weeks. The KLSM CPA Firm offers professional tax and accounting solutions to individuals and small businesses alike. Take advantage of their customized services by calling (832) 224-5029 today.
David Yeomans Accounting Service, Inc.