While most Americans associate April 15th with a hard and fast tax filing deadline, each year many taxpayers find it impossible to file their completed returns on time. When this is the case, the IRS, State, and local authorities give taxpayers the opportunity to request an extension of time to file. This request must be received before the April 15th deadline, so if you missed the deadline and didn’t file an extension, you should consult a tax professional immediately to address this oversight before any additional penalties accrue. If, however, you were able to request an extension before the deadline, then it is important to pay close attention to the approaching extension deadlines to ensure your returns are filed on time.
Filing Extension Deadlines for Individuals and Businesses
If you’ve already requested an extension, September 15th, 2014 is the final deadline to file corporate and partnership tax returns. With this deadline only a few weeks away, it is very important to get your returns started immediately to allow adequate time for preparation of your returns. Missing this deadline means you’ll face a costly late filing penalty, making it even more difficult to get tax problems under control and get back on track.
Unlike businesses, individuals who requested an extension before the April 15th deadline have until October 15 to file a return. If you owe taxes and miss this deadline, you will be subject to a late filing penalty, which is 5% of your taxes owed for every month the return is late (up to a 25% maximum). If you file more than 60 days after the deadline, the penalty is a minimum of $135 or 100% of unpaid taxes (the smaller of the two amounts).
If you’ve already filed your return, but haven’t paid the balance owed, you are subject to a different penalty. The late payment penalty for individuals is 0.5% (1/2 of one percent) for every month the taxes go unpaid (up to a 25% maximum). As these figures illustrate, this is a much lower penalty than the late-filing penalty, so filing your taxes on time is the most cost-effective option for many taxpayers. In fact, a late-filing penalty can be as much as 10 times higher than a late-payment penalty.
Get Peace of Mind by Filing Soon
If you owe money, but have not filed a return or made payments, interest and penalties can accumulate rapidly. Rather than ignoring this costly mistake, addressing it immediately can save you further penalties and give you peace of mind. If you need to file your return before the extension deadline, call 212 Tax & Accounting Services today at 646-699-4818 or complete our brief tax preparation quote request.