Not too early to file tax return extensions.
OK. It's Spring officially. April 18 is four weeks away. Do you know how fast that goes? If you have the slightest doubt that you will be filing your tax returns by April 18, then file the six-month extensions NOW! Easy to do electronically. IRS Free File
What if you don't file anything by April 18? IRS will charge you a Late Filing Penalty. How much? One-half of one-percent monthly. 0.5 pct. And your State will also charge you. And more than IRS will, to be sure. NYS charges 5% per month!
And if you think you may owe money to IRS, make that payment by April 18. Also can do online.
Is there a penalty for Late Payment? You bet! Same as the Late Filing Penalty. 0.5 pct.
Both Late Filing and Late Payment penalties will run together. That's 1 % monthly. Plus the State.
Most States have websites for filing extensions.
Paying the tax you owe is bad enough. Don't jam yourself up by being late!
Comments (1)
Bruce, Excellent advice!
Real estate investors may not pay attention to the IRS like we do as tax preparers.
The IRS is backlogged by uncountable paper documents.
Make your estimate and payment, of what you think you may owe, along with your extension--BOTH ELECTRONICALLY by April 18th.
Janet Behm, about 4 years ago