Did You Miss the April 18th Tax Filing Deadline?

Although the deadline for filing taxes for 2022 technically passed on Tuesday, April 18th, those who were unable to file can still do so without incurring significant penalties and fines. There are also options for taxpayers who didn’t file because they are currently unable to pay the entirety of a tax bill. For help requesting an extension and limiting your own fines for a late tax return, reach out to our legal team today.

Requesting an Extension 

Taxpayers who were unable to file their returns by the April 18th deadline can request an extension, which gives individuals an extra six months to file. It’s important to note, however, that an extension to file is not an extension to pay, so while it gives taxpayers until October 16th to gather, prepare, and file their returns, penalties and interest will still continue to accrue on any taxes that weren’t paid by the original April deadline. This is why it’s so important for taxpayers to file (and pay as much as they can) as soon as possible, as the late filing and late payment penalties can add up quickly, often exceeding the amounts initially owed.

Some Taxpayers Automatically Qualify for an Extension 

Many taxpayers whose 2022 tax returns and payments were due on April 18th don’t have to request an extension, but may automatically qualify for one. This includes:

• Those who live or own a business in a natural disaster zone;
• Members of the U.S. military who served or are still serving in a combat zone;
• Support personnel in combat zones or employed as part of a contingency operation; and
• Taxpayers who live outside of the U.S., including U.S. citizens and resident aliens who live and work outside of the country or Puerto Rico.

In addition to automatically qualifying for a tax filing extension, these individuals are also given extra time to make tax payments.

What Happens if I Don’t Obtain an Extension or Make a Payment? 

Fortunately, the IRS offers a number of options to taxpayers who owe a tax debt, but who are unable to pay the full amount all at once. For instance, taxpayers who make at least a partial payment can reduce the overall amount of the debt that is subject to interest and penalty charges. Generally, the interest rate for unpaid taxes is seven percent and is compounded daily. The late filing penalty, on the other hand, is five percent per month, while the late payment penalty is .5 percent per month. Both of these penalties max out at 25 percent.

Tax Problem? Call Our Office Today 

If you have not yet filed a tax return or made a tax payment, you may still qualify for an extension or can take steps to limit your fines and penalties. To learn more, call experienced CPA, former FBI Special Agent, and skilled Florida and nationwide unfiled tax attorney Ronald Cutler, P.A. at 386-490-9949. You can set up a free, one-on-one consultation by calling our office or by sending us an online message today.

Sources: 

irs.gov/newsroom/missed-the-april-18-filing-deadline-file-now-to-limit-penalties-and-interest

irs.gov/newsroom/need-more-time-to-file-taxes-its-easy-to-get-an-extension-with-irs-free-file