Remember January—when you had plenty of time to get your taxes done? Those days are gone, the first quarter is behind us, and now, so is Tax Day. When your W-2 first arrives, it feels like you have plenty of time to file—and then time flies by.
Groucho Marx (possibly) once said:
"Time flies like an arrow. Fruit flies like a banana."
That quote has nothing to do with your taxes, but I hope you enjoy it nonetheless.
Over the last three and a half months you found time to file your taxes, but if you haven't gotten to it, you may we wondering, "What should I do now?"
According to the IRS, here are some things you should keep in mind:
- "You may be subject to the failure-to-file penalty, unless you have reasonable cause for your failure to file timely."
- "Tax not paid in full by the original due date of the return (regardless of extensions of time to file) may also result in the failure-to-pay penalty, unless you have reasonable cause for your failure to pay timely, or the IRS has approved your application Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship."
- "Interest is charged on taxes not paid by the original due date, even if you have an extension of time to file or pay. Interest is also charged on penalties."
- "There's no penalty for failure to file if you're due a refund. However, you risk losing a refund altogether if you file a return or otherwise claim a refund after the statute of limitations has expired. An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances. After the expiration of the three-year period, the refund statute generally prevents the issuance of a refund check and the application of any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid. However, the statute of limitations for the IRS to assess and collect any outstanding balances doesn't start until a return has been filed. In other words, there's no statute of limitations for assessing and collecting the tax if no return has been filed."
So, while it might be stressful to see April 15th come and go—if you haven't filed—fret not. You can easily apply for an extension. Just remember—"an extension of time to file is not an extension of time to pay."
Here are three ways you can file your extension:
- "Pay all or part of your estimated income tax due and indicate that the payment is for an extension usingIRS Direct Pay,EFTPS: The Electronic Federal Tax Payment System, adebit or credit card or digital wallet. You'll receive a confirmation number for your records."
- "E-file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return using your personal computer or through a tax professional who uses e-file."
- "File a paper Form 4868.Note: Fiscal year taxpayers may file extensions only by filing a paper Form 4868."
I hope this helps you get your taxes done this year—and I hope you either get a refund or break close to even. Personally, I technically got a refund and definitely spent both dollars in one place.
