Uh-oh . . . that Dreaded Tax Deadline Looms!
Ready to file your individual income tax return?If you haven’t received all your data yet, or simply can’t assemble all that information in time, don’t panic quite yet. The IRS provides an automatic six-month extension for taxpayers who continue to await their K1s or whose lives and responsibilities don’t permit them to file by the annual deadline.The catch? An extension request must be filed by using Form 4868 on or before the April due date, this year April 18th.The bigger catch? An extension of time to file does not give you an extension of time to pay! Any tax owed remains due by the deadline.So what’s the major advantage to filing an extension request if you can’t pay tax? By requesting an extension, you avoid the late-filing penalty of 5% of tax owed, per each month after your return due date.Even if you can’t pay your total tax liability, pay as much as you can. In fact, if you remit electronically, clearly identified as an extension payment, filing an extension is not necessary.Paying some or most of your tax due will also minimize the interest charged by the IRS at a rate of 0.5% per month.Taxpayers with simple returns and extensions can take advantage of filing using the IRS website, www.IRS.gov. Those with more complex needs should consult a tax accountant service or CPA.If you need a new CPA, contact our experienced tax and accounting staff at Patrick & Robinson. We remain dedicated to providing our clients professional, personalized tax and financial consulting services.Contact us at Office@CPAsite.com or 904-396-5400.
