Mar 17, 2022
TAX PAYERS SHOULD FILE ON TIME TO AVBOID COSTLY INTEREST AND PENALTY FEES
We always encourage our clients to file early. Early filings mean early refunds! However, we recognize that some cannot do so perhaps do to a more complicated return or awaiting tax documents. But, taxpayers should file their return by the deadline. Contact us and we will file an extension of time for you. Taxpayers who fail to file on time and who may owe taxes may even be charged with a failure to file penalty. This penalty is usually five percent of tax owed each month, or part of a month that the tax return is late, up to 25%.
This year's deadline is April 18,2022.
Remember, an extension of time to file is not an extension of time to pay. An extension gives taxpayers until October 17, 2022 to file their 2021 return but taxes are still due by April 18, 2022.
For those taxpayers who may owe back taxes or who may owe taxes for this year they can submit a request for a payment plan using Form 9465 Installment Agreement Request.
Interest is based upon the amount of tax owed and for each day it is not paid in full. Interest rates are determined every 3 months and may vary based upon the type of tax, whether business or individual tax liabilities, for example.
Contact our office to file timely and to answer any questions you may have.