Federal tax returns are due April 17th unless you file an extension. Your extension must be filed by the same deadline.
If you think you will be unable to meet the deadline, file an extension. There’s not a penalty for filing your return before your extension is up or even for filing it on time if you're able to. You’ll want to be safe to avoid costly penalties. If you do miss the deadline and did not file an extension, you will be assessed penalties and interest. There are 3 penalties you will be charged by the IRS and they are calculated by the amount of tax you owe.
3 Penalties for Late Filing
Failure to File:
This penalty is calculated by the length of time past the deadline for filing your tax return. You will be charged 5% times the amount you owe each month you are late up to a maximum of 25%.
Failure to Pay:
This penalty is also calculated by the length of time past the deadline for paying your tax due. You will be charged 0.5% times the amount you owe each month you are late.
Interest:
The percentage of interest you will be charged is also calculated per the amount owed, however the percentage varies per the amount you owe and is per the current interest rate.
To avoid costly penalties, you must either file your tax return by the deadline of April 15th or file a request for an extension by the deadline of April 17th.
There are online services available to help you complete your tax return that will guarantee the accuracy and guarantee the biggest refund or maximize your deductions to help reduce the amount of tax you owe.
For more information and answers to all your tax-related questions, visit TurboTaxOnline today.
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