What happens if I miss a filing deadline?
As 2017 begins to wind down, many people will begin preparing for income tax season, making sure everything is in order so they are prepared to file by the April 17th, 2018 deadline.
If you think you are not going to meet the filing deadline in April it is wise to file for an extension (this must be done by the April deadline), this pushes your tax filing deadline to October 15, 2018.
If you owe taxes and have filed an extension you still must pay your tax bill by April 17th. Doing so will incur no penalties. If payment is not made by April 17th, regardless of filing an extension or not, a penalty of 0.5% of your tax bill amount may be assessed for each month (or fraction of) that your bill goes unpaid, up to a maximum of 25%.
If you owe taxes and do not file your return or an extension by April 17th, or you miss filing by the extension deadline, a late filing penalty of 5% of your tax bill may be assessed for each month (or fraction of) that your return is late, up to a maximum of 25%.
Interest on unpaid tax bills begin accruing one day after the filing due date, and is compounded daily. It will not stop accruing until your tax bill is completely paid off!
If you are owed refund you have 3 years to file your return and claim it, after that it will belong to the US Treasury. If there is reasonable cause for failure to file or pay your tax bill on time you may be able to avoid penalties.
There are many benefits to having a public CPA at your disposal come tax time, one of those being that they will be sure to keep you updated on all deadlines and ensure that your taxes are filed properly and in a timely manner, helping you avoid late payment and filing penalties.
The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax services information.
Call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730 as required to set up an appointment.