I’ll be the first to admit it… I’m in the tax business and
struggle every year to have my own personal tax return completed by the April
15th deadline. As a matter of
fact, Uncle Sam gave me two extra days this year and I still didn’t get it done
in time! If you’re in the same boat,
I’ll offer up a few helpful hints which will hopefully “inspire” you to get
your return submitted.
The goal is to get your return submitted as quickly as
possible. The interest and penalty clock
starts ticking immediately so, the sooner you get your return filed, the less
you’ll be penalized. This means that
e-filing your return is still your best option.
By e-filing your return, you’ll know immediately that the IRS has
received it. By mailing your return
through the postal service, you may have to wait weeks to receive confirmation
that the return was successfully submitted.
Once you complete your return and know how much you’ll owe,
pay as much as you can when you submit the return. If you can pay it in full, great! If not, you can request an installment
agreement for the amount you cannot pay immediately. An installment agreement can be requested by
filing a Form 9465 with
you return. The form is simple and
allows you to suggest your own monthly payment amount and payment due
date. The IRS will acknowledge your
request for a payment plan soon after the request has been received.
Lastly, don’t be surprised when you receive a bill for
interest and penalties. There are two
penalties that may be assessed: a late filing penalty and a late payment
penalty. Both are relative to the amount
of tax due to the IRS so paying as much as you can as soon as possible will
help reduce any additional amount you may owe.
For those of you who are due a refund, you’ll also want to
file as quickly as possible. You will
not be charged any interest or penalties for filing after the due date but you
may forfeit your refund if you don’t file within three years.
Be sure to check in with your local liberty tax office, if
you need any help completing your return!
Disclaimer: Every effort has been taken to provide the most accurate
and honest analysis of the tax information provided in this blog. Please
use your discretion before making any decisions based on the information
provided. This blog is not intended to be a substitute for seeking
professional tax advice based on your individual needs.