In a press release, the Federal Revenue Service (IRS) reminds individuals to file their tax returns and make any owing payments by the April 18 deadline.
If you don’t, there could be late filing and late payment fees. But, if taxpayers are having trouble making their payments before the due date, the notification also offered a number of tips they can employ to help them avoid or lessen penalties.
File For Extension
The IRS advises taxpayers who are unable to make a complete payment by the due date to request a six-month filing extension. They now have until October 16, 2023, to file, allowing them to avoid fees and interest for missing the deadline.
For taxpayers who owe money but do not request an extension and miss the April 18 deadline to file, the IRS may impose penalties for failure to file. As per the IRS, a number of groups could qualify for a return extension, including:
- American citizens who pay taxes abroad or resident aliens: It is a good idea to have a backup plan in case something goes wrong. Taxpayers will need to pay interest if their tax payments aren’t made by the time they return to the United States.
Taxpayers who want to take advantage of the two-month delay must include a statement with their returns that describes their current living situation.
- The deadline for submitting federal tax returns and making any required payments has been extended by two months for service members who are in combat zones. Military members must similarly describe their circumstances when filing their taxes in order to acquire the appropriate extension.
- FEMA catastrophe victims: Unlike the other two categories, taxpayers in these specified areas don’t need to submit any additional paperwork or notify the IRS in order to receive a filing extension. The IRS advises taxpayers to visit the Tax Relief in Disaster Circumstances page for precise filing dates as each affected area is likely to have different extension deadlines.
- The deadline can be extended by six months by any taxpayer, bringing it to October 16, 2023.
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Tax Returns Penalties
If a taxpayer is unable to pay their taxes in full by the due date, they may apply for a payment plan, such as an installment agreement that enables them to pay their debt over time.
Taxpayers can create a payment schedule online using the Online Payment Agreement tool. The IRS will lower the failure to pay penalty to 0.25 percent of the tax payable if a taxpayer has established an installment agreement with the organization.
Finally, taxpayers can request penalty relief from the IRS. Under “reasonable cause” penalty relief provisions, the agency can agree to forego penalties for taxpayers who failed to submit their tax returns on time or pay the taxes they owed.
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