With tax season in full swing, you may be wondering about the importance of filing your tax return on time. While you might be under the impression that missing the deadline won’t have any real consequences, the truth is that filing late can cause you some serious financial repercussions. It’s always best to file on time so you can avoid having to pay penalties.
Failure to File
If you don’t file your taxes on time, the IRS will hit you with a failure-to-file penalty. This is usually 5% of the unpaid taxes for each month that you don’t file. While this amount cannot exceed more than 25% of your unpaid tax liability, there’s no reason for you to add on to your existing tax bill simply because you didn’t file on time. If you submit your return by the filing date, you can avoid this penalty altogether.
Failure to Pay
In addition to having to pay a failure-to-file penalty, you may also be hit with a failure-to-pay penalty. What you owe in taxes is due on the filing date, even if you don’t file. As such, it’s essential for you to get your tax return in on time. There are other options available to you if you can’t pay what you owe, and a tax resolution specialist can assist you in dealing with the IRS.
If you’re in need of help preparing your taxes or filing for an extension, turn to the pros at Taxation Solutions, Inc. We’ll answer any question you might have about filing your tax return and make sure your taxes are filed on time! As a reminder, your 2016 taxes are due on April 18.