Taxpayers Who Owe Taxes Should File Now To Limit Penalties And Interest
Who missed Monday's April 18 tax-filing deadline to file their federal income tax return as soon as possible. While taxpayers due a refund receive no penalty for filing late, those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest.
File to reduce penalties and interest
To avoid fines and interest, taxpayers should complete their tax returns and pay any taxes owed as soon as possible. A filing extension is not a payment extension. An extension of time to file gives you an extra six months, with a new filing deadline of October 17. Penalties and interest are assessed on taxes outstanding after April 18, and interest is imposed on both taxes and penalties until the debt is paid in full.
Even if a taxpayer cannot afford to pay the full amount of taxes owed right away, they should still submit a tax return to avoid potential late filing penalties.
The failure to file a penalty is usually 5% of the tax owed for each month or part of a month that a tax return is late, up to a maximum of five months, reduced by the failure to pay the penalty amount for any month when both penalties apply. If a return is filed more than 60 days after the due date, the penalty is $435 or 100% of the unpaid tax, whichever is less.
Email us at hello@focusyourfinance.com for help in filing your taxes.