The penalty for paying late is 5 percent for every month that the outstanding tax is not paid.If you might be subject to a penalty, keep the following in mind: Filing a tax extension keeps you square with the IRS and lets them know that you will be filing your complete paperwork later, but it does not grant you more time to pay the taxes you owe. Special tax filers must ensure their federal and state tax returns are in before their extensions expire.Įven if you file an extension, you will have to pay penalties if you do not pay your taxes by the regular tax due date. American servicemen and civilians serving in a combat zone or a qualified hazardous duty areaįor those two groups, the extended deadlines depend on the classification of the taxpayer's situation, but are generally longer than the automatic six-month extension most Americans can request.More detailed, special IRS rules exist for two groups of people that are automatically allowed special IRS tax filing extensions: Be in military or naval service on duty outside the U.S.and Puerto Rico and your main place of business or post of duty must be outside the U.S. citizen or resident alien and on April 18, 2016, you must: Some tax filers will qualify for an automatic two-month extension to file their federal tax return and pay income tax. You will then receive a confirmation number for your records. You must provide relevant tax information and indicate that the payment is for a tax-filing extension using one of the IRS-approved methods of payment. To do this, pay all or part of your estimated income taxes that are due. You can even get the automatic extension without filing IRS Form 4868. Once you've filed your completed IRS tax extension form, you'll automatically get the six-month extension to file your IRS tax return.Mail your completed form to the IRS or file the form electronically by using an IRS e-file form.Get and fill out IRS extension Form 4868, Application for Automatic Extension of Time To File U.S.You can file a tax extension online or via mail by following these steps: To qualify for a tax extension, you must file the appropriate form by the standard tax filing deadline of Ap(or April 19, 2016, if you live in Maine or Massachusetts). The tax extension deadline is the regular tax deadline. The IRS actually has a payment plan program that's surprisingly easy to enroll in, as well as several other options if you can't pay.Whether you file taxes online or file tax return forms via mail, the general process to request an extension on the tax deadline is the same. The bottom line here is that if you owe the IRS money, get your tax return in as soon as possible.
As of early 2017, the IRS interest rate is set at a 4% annual rate, and this is subject to change over time. If you pay late, interest will accumulate on your past-due balance, in addition to these penalties. That's why I say that it's better to file and owe the IRS money than to not file at all. On the other hand, the late payment penalty is 0.5% per month or partial month, just one-tenth of the amount it'll cost you if you don't file at all. As I write this, it's just a couple of weeks past the tax deadline, so you still have time to file your 2016 return and limit your late filing penalty to just 5% of your balance. The failure to file penalty is 5% per month (or part of a month) after the tax deadline has passed, up to a maximum of 25% of your unpaid balance. If you owe the IRS money, here's what you need to knowĮven if you can't pay what you owe yet, it's important to file as soon as possible.
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