You Can’t Complete Your Tax Return by April 15th?

 The worst news about taxes is you have to pay them. If you have not filed yet, try to get your taxes mailed by Friday, April 15.
If you cannot file on time, you need to file an extension. If you do and expect to owe, you should also file an estimated tax. Filing an extension will not prevent you from paying penalties If you have not paid through the year or have not paid enough. Therefore, we recommend you make an estimated penalty payment as soon as you can. (There is no penalty for filing late if you do not owe taxes).
The penalty for filing late is five percent of your unpaid taxes for each month, or part of a month in which your tax return is late. The penalty for late filing begins accruing the day after the tax filing due date.
If you have not paid your taxes by the deadline, you can expect to face a penalty of 1/2 to one percent of your unpaid taxes. The penalty for paying late takes effect for each month or part of a month immediately after the due date and starts accruing the day after your taxes were due. Should the penalty for late filing and late payment both apply to a given month, the maximum penalty is five percent.
If you did file an extension and paid 90 percent or more of your tax liability by the deadline, you will not be penalized for failure to pay on time so long as you pay the remaining balance by the extension due date. Furthermore, if you can demonstrate that you did not pay on time due to a “reasonable cause,” you will not have to pay either a failure-to-file or failure-to-pay penalty. For further clarification of this, you are welcome to call our office.
If you have questions concerning late filing or payment of taxes, call us. We will gladly provide you advice and welcome you to call us for an appointment.
For more information concerning Professional Tax Services, please call 661-259-1967. Through our EZ2 Thrive program, Professional Tax Services, provide unlimited tax planning advice free to their clients. Visit their tax services website at www.scvprotaxservices.com.