Filing taxes late could soon cost you more money!

If you ever filed your individual tax return late and owed money, you know the IRS adds interest and a penalty to what you already owed. We’re hoping that’s not you this year!Maybe you’re OK with filing late if you’re too busy making money. However, folks who postponed because they lacked funds only add to their troubles.Beginning with the 2016 tax year (taxes filed in 2017), the minimum penalty for filing your taxes 60 or more days after the deadline will be the lesser of 100% of tax owed or $205 (an increase from $135).Note: if you were granted an extension to file your return, the 60-day period begins on the extended due date.As a CPA and tax preparation firm, we always recommend filing your tax return on time, even if you can’t pay the balance due. Pay what you can, and request an IRS payment plan to eliminate your tax debt.You’ll still pay interest on the balance due, but at least you won’t face the added burden of a late filing penalty.Remember, you’re only penalized for late filing if you owe tax. If you’re expecting a refund, the government is happy to hold onto your money for you as long as you like, with no charge. (After three years though, you’ll lose that entire refund – it will be too late to get your money back!)If your tax accounting and preparation is too complicated to file on time, or you just filed for an extension, you need an experienced team of CPAs to help complete this stressful task. Contact Patrick & Robinson CPAs for help: Office@CPAsite.com or (904) 396-5400.