Have You Filed Your Tax Return?

It is April again and your taxes are due. The deadline this year has been extended to Tuesday, April 17th.
Not Ready to File?
If you are not ready, you need to file an extension request via IRS Form 4868 on or before the April 17. (https://www.irs.gov/pub/irs-pdf/f4868.pdf). The IRS will not accept your application after April 17. If you owe tax and fail to pay the amount due by the 17th, late penalties will apply even if you filed an extension.
You need to submit your return by the 17th, even if you cannot pay what you owe. This will lower interest and penalty obligations. If you file late and are entitled to a refund, there is no penalty. In such cases, however, you must file your 2017 taxes by April 18, 2021, if you failed to file an extension, or by October 16, 2021, if you filed. Miss your deadline and the US Treasury keeps your refund.
Penalties
If you do not file by the due date, a penalty will apply. The IRS places a heavier penalty on filing late than paying late. If you fail to pay by the due date, the IRS imposes a penalty of one-half-of-one percent of the additional tax owed. This penalty applies for each month or part of a month after the due date. Penalties begin accruing on April 18 with a cap of 25 percent.
Failing to file carries a five-percent penalty on the unpaid taxes for each month, or part of a month the return is late, up to a maximum of 25 percent. Penalties begin accruing on April 18. If you wait more than 60 days past the April 17 deadline, the penalty becomes a minimum $205 or, if you owe the IRS less than $205, 100 percent of the unpaid tax. For any month in which the late-filing and late-payment penalties apply, the IRS waves the late payment penalty. If you intend to pay late, file on time and submit the estimated amount you believe you owe.
We welcome your call if you have any questions.
Professional Tax Services is a locally-owned provider serving over 3,500 local residents and businesses. For more information call 661-259-1967 or visit www.scvprotaxservices.com. Through their complimentary EZ2 Thrive program, they provide unlimited free tax planning advice to their clients.