Why You Shouldn’t Slack If You Received a Tax Filing Extension
If you received a filing extension from the Internal Revenue Service (IRS), that is definitely something you don’t want to take lightly. It can be said that the IRS believes that they’ve given taxpayers a sufficient amount of time to prepare and process their annual filing. In fact, they’ve given you an entire year to do so!
Just because tax season typically starts between the months of January and April doesn’t mean that it’s non-existent outside these months. This time might be spent by those who have filed an extension or paying what they owe in monthly installments. For some, “tax season” can be a year-round responsibility, especially for those who may have been granted a filing extension.
More About Filing a Tax Extension
If you’ve received a filing extension, it doesn’t necessarily mean that you’ll have to tangle with your tax responsibilities all year. However, it’s safe to presume that if you’ve gone through the task of requesting a filing extension, chances are your annual filing might be a little more complicated or you were just delinquent in filing on time.
If you filed your taxes after the deadline, there will be a penalty. How much it is, depends. April 15 is the deadline for filing and paying any taxes owed. According to the IRS, meeting these requirements will result in a failure-to-file penalty. There is also the failure-to-pay penalty, which usually more than the other.
The failure-to-file penalty is typically 5% of the amount of money you owe to the IRS. This penalty starts the day after the deadline, but it won’t exceed 25% of your income. Still, 25% is still quite a bit to get added on to whatever you owe, and it’s an even bigger blow to get deducted from an annual return.
For filers who don’t reach the deadline to pay their taxes, the failure-to-pay penalty comes into play. This fee is half of the 1% of your unpaid taxes.
Getting an Extension
It is possible to avoid these penalties if you file for an extension. According to the IRS, “If you timely requested an extension of time to file your individual income tax return and paid at least 90 percent of the taxes you owe with your request, you may not face a failure-to-pay penalty. However, you must pay any remaining balance by the extended due date.”
Receiving an extension from the IRS is like getting a second chance to file your taxes. If for some reason, you don’t meet the extended deadline further penalties will occur. The IRS goes on to inform you that “If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.”
If you think you’re going to need more time to file your annual taxes, contact Success Tax Relief to help you file for an extension. When it comes to tax matters, everything is a process and we have 30 years of experience to help you through the process of any tax issues you might have. So call us today at 877-825-1179 or through our online form.