Many of you may know the October 15th deadline for filing personal income tax returns on extension is approaching. My staff and I have been scrambling to finish the returns that were brought in.
For those of you who completely forgot all about your tax return on extension, here is the deal if you miss the deadline.
If you are getting a refund, you don’t need to worry! You will not have to pay any penalties, but you can no longer efile your return.
If you owe taxes you will be charged:
1) Penalties for not filing on time
2) Penalties for not paying by April 15th and
3) Will be charged interest on your balance starting from April 15th.
The penalty for not paying by April 15th and interest will be charged even if you meet the October 15th deadline. It will be calculated off the balance due on your tax return. The penalty for filling late is 5% of your tax balance a month, with a maximum of 25%. While the penalty for not paying by April 15th is ½% per month, with a maximum of 25%.
If you haven’t dropped off your tax information to your accountant, I suggest you do so ASAP! Even if they can’t guarantee they can finish it before the deadline, you will owe less interest and penalties.
If you don’t have all the funds to pay your balance and have your return done, send it in! You can avoid the 5% penalty for not filing on time. Most taxpayers have the option of requesting an installment agreement, depending on how much they owe. Just ask your tax preparer for the appropriate forms.
If you have any questions, please feel free to call my office at 915-857-8158.