Extra Days!

As it seems this year continues to fly by, we find October upon us already. This brings the end of Summer and the start of Fall. This also brings the deadline for filing your taxes if you requested an extension back in April. Generally, the usual filing extension due date is Oct 15th but this year it is Oct. 17, 2022. This is because Oct. 15th falls on a Saturday this year. So, this year you have a few extra days!

Military extensions may extend beyond Oct. 17. While most U.S. taxpayers are required to file by the Oct. 17 deadline, some military members may be eligible for an automatic extension if they were deployed to a tax-free combat zone for part of the previous or current tax year. This extension has several rules, so check with your tax professional or visit the IRS website for specific information.

The IRS reported receiving about 19 million requests for tax extensions. If you're among those who filed for one, be sure to keep the deadline (Oct. 17) and get your returns filed. A tax extension gives you until then to file your tax return.

Remember this only extended the time to file. If you had or thought, you may have tax liability you were required to pay that liability back in April. The extension was an extension of time to file not to pay your taxes.

Keeping this deadline is important as it can reduce any penalties you could incur. If you fail to file by the deadline, you will incur a Failure-to-file penalty – calculated as 5% of the taxes owed for each month outstanding (capped at 25% of the total tax liability). Failing to file will also increase the penalties and interest you will owe on any unpaid tax liability. Please keep in mind the information shared in one of our previous blogs (Tax Penalties) on penalties, you could qualify for abatement of these penalties.

It is also important to remember that even if you do not have a tax liability and could be owed a refund. You will not receive that refund unless you file a tax return. And generally, the IRS or State taxing agencies do not pay you interest for holding your money for you.

If you do not know where to start or are concerned as to whether you have all the tax documents needed to file, contacting a tax professional can be a big help. We will gladly provide you with the insight, and even assist with the filing of your return. The IRS and State taxing agencies also offer free assistants as well.

Remember, it never hurts to ask. Because like my Aunt Myrtle use to tell me “There is always help you just have to ask”.

Bottom line is the most important thing is filing the tax return prior to the deadline. And this year you have a few EXTRA DAYS to do it.