The Tax Deadline is a fact of life. Today’s procrastination can transform into tomorrow’s tax fraud. The April 17 Deadline is about to descend on us. The cut-off for filing is less than a month away. Yet some taxpayers are still avoiding the inevitable.
As we recently heard one millennial say to his Dad, “Pay your taxes, dude!”
We’re not sure this was a good way to communicate with the older generation, but the younger man had good intentions.
A Wake-up Call from Your Tax-Deadline Experts at AP Accounting and Tax Services
“Do I Really Have to Pay Penalties for Taxes I Didn’t Even File, Years Ago?”
He was just trying to save his father from the penalties and punishments of filing late. Or worse, not filing at all. You should hear the tax experts at AP Accounting & Tax Services. They are buzzing the warning bell. They are punching the klaxon alarm and sounding the siren. But we know you cannot hear such symbolic warnings. So, we will simply sound the wake-up call with this blog.
Sometimes a Tax-Deadline Creeps up on You
Shakespeare enthusiasts will note that this is the time of the Ides of March. If you have not yet filed your taxes, this time is not quite as foreboding a time for you as it was for Julius Caesar. But it’s a time full of dark and serious warnings.
You are not alone if you are surprised that half the days of March of 2018 are gone forever. 2018 seems to be rushing through time at a break-neck speed.
Likewise, apparently, misery loves company. You are also not alone if you are just now getting your taxes done. “Last year, nearly one-fourth of Americans who filed their taxes on time did so within the last two weeks before the deadline, according to the IRS.”
Self-Delusion about the Tax-Deadline Costs You Money
You cannot wish away tax debt or hide forever from the IRS. We advise you to organize and prioritize before your tax obligation gets out of hand completely. Ms. X was disorganized and fell behind for three consecutive years. It cost her penalties and interest. Fortunately, she did not have to go to prison.
You see, failure to file before the tax deadline is one of the most every day, garden-style mistakes you can possibly make. Tax specialists warn us, “When you have unfiled taxes, you put yourself in jeopardy of not only incurring expensive fines and penalties but also being sentenced to jail.”
They add, “In fact, the IRS considers not filing your taxes to be a form of tax evasion. You could face up to a year in jail and a fine of up to $10,000.” After the Tax Deadline, Taxpayers Will Pay in Penalties, Panic and Financial Pain.
Time to Call for Professional Help
Tax Professionals at A.P. Accounting and Tax Services Can Simplify your Life.
First of all, if your taxes are confusing and stressing you, and that is why you are late, it is high time to reach out for professional help. You will find the help you need at AP Accounting and Tax Services. Also, if you are confused about Tax deductions, please refer to our previous blog on this subject.
Secondly, and quite typically, a prime reason taxpayers procrastinate is that they simply cannot afford to pay their tax bill.
It’s understandable why you would hesitate to file if you know you cannot afford to pay Uncle Sam. A lot of people do not understand:
1. Even if it’s close to the deadline, after the deadline or very late, you should file your late returns as soon as you can.
2. Your Tax Returns must be filed before you can consider filing a request for a payment arrangement or installment plan from the IRS.
3. The wondrous point about filing even if you cannot pay is that you will now be in compliance. You will not continue to accrue fines or (cringe!) possible jail. Once you file your returns, you will be considered to be in compliance with the IRS and no longer in jeopardy of incurring heavy fines or jail time.
The Price of Tax Deadline Neglect
Uncle Sam is going to charge you with a late-filing fee of 5% of your taxes owed for each late month or part thereof. The IRS is empowered to do this up to a maximum of 25% of the total bill. Plus, you can expect a sizeable late-payment penalty as well as interest charges on your unpaid taxes.
And, by the way, these fees will be due in spite of the fact you file an extension.
What If Uncle Sam Owes You Money?
What if you can’t file for some mysterious reason, but you know the IRS owes you money? You won’t get your money until you file your tax return. In a nutshell, you have a limit of three years from the tax deadline you originally missed.
Let’s be clear: if you cannot get your tax return filed within three years, you will never get that money. Essentially it is forfeited. It makes a new home in Uncle Sam’s vault.
Don’t Guess. Be Sure Your Tax Refund is Correct. See a Tax Professional Today.
The Dark Side of Neglecting Your Tax Deadline
Ultimately, if you neglected your deadline and did not file an extension, it is absolutely necessary to work with a tax professional.
You see, a dark secret, misunderstood by many taxpayers, is that a late-filing fee can be up to ten times more money than the simple late payment penalty. Basically, if you want to pay less in the long run, file sooner, even if you missed the deadline.
