Taxpayers who tried to file and pay online were stunned on April 17. As they attempted to file and pay online, an IRS message greeted them:
“This service is temporarily unavailable. We are working to resolve the issue. Please come back later and try again, or you can visit the Make a Payment page for alternative payment methods. We apologize for any inconvenience.”
Failure Foils Final Deadline
Shocked – Tax Deadline and the IRS is closed. Not really. Take Another Day!
Even as we write this story, the clock is ticking down on a new deadline. That’s right. In an unprecedented move on the part of the IRS, all those last-minute filers and taxpayers were given another day’s extension for filing their income tax returns. You see, after numerous technical difficulties, the IRS had to issue another deadline date for filing, Wednesday, April 18, 2018—until midnight.
IRS – Software – Tax Preparers: Who’s Fault?
The IRS reported, “There was a great deal of Internet activity and the “service that taxpayers use to file online was partly down throughout Tuesday morning and afternoon.”
After hours of trying to repair computer glitches, the IRS issued the following announcement.
“Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18.”
The IRS also explained, Taxpayers “do not need to do anything to receive this extra time….”
While attempting to describe why this problem occurred, the IRS also apologized for system failures that contributed to the problem.
They stated that the IRS appreciates everyone’s patience during this period. And of course, “The extra time will help taxpayers affected by this situation…”
And added that “This is the busiest tax day of the year.”
Busy Tax Day: Who or What is to Blame For the Chaotic Breakdown of the Systems?
My Refund is Cause to Celebrate. Or is it? Think Again!
Website problems appeared to be in the “transmission” of tax returns. The returns were from software providers which included H&R Block and Turbo Tax.
Intuit who owns both TurboTax and H&R Block quickly responded that they were processing taxpayer forms. The representative for Intuit was quoted. “Taxpayers should continue to prepare and file their taxes as normal with TurboTax.”
Additionally, she continued, “For those that prepared and filed their taxes with TurboTax earlier today, TurboTax is now submitting those returns to the IRS and is currently processing newly filed returns as normal.”
Similar reassurance was given to H&R Block clients. And to the last minute tax filer, they said: “While the IRS system is down, we are completing the returns, which will be sent as soon as the IRS system re-opens and will be considered filed on time.”
The H&R Block representative also stated, “We are encouraging taxpayers to continue to use our retail services or our do-it-yourself products as they normally would.”
Some believe there may have been more to the day of excitement and confusion than the obvious. However, at A.P. Accounting and Tax Services, one thing seems certain. It pays to have your taxes and tax plans completed by professionals that have your interest at heart.
The Quest for a Stay of Execution (Extensions) has Ended
For taxpayers Midnight Tuesday, the 18th was the last day to file for the 6 Month Extensions.
Of course, the dramatic one day extension came as a surprise to all. We were all convinced that the 17th was the last day to file our taxes or to file an extension.
30 Day Extensions for Small Businesses
Some small businesses were rushing to put in requests for a 30-day extension. Reminder: This is an extension for filing, not paying. It was designed for taxpayers who need additional time to complete their tax filing.
For instructions on the 30-day extension, check out the clear instructions at this reliable online resource:
Midnight, April 18, 2018, is Pay Up or Else
At the stroke of midnight, the deadline for tax filing comes to an end. If you still have not filed your income tax? Wow. Let’s look at a brief review of the consequences if a taxpayer does not file on time. (Unless you have filed an extension)
1. We hope you used a tax professional. If you do not have a tax expert, consider calling A.P. Accounting and Tax Services. They may be able to lessen your problems.
A.P. Accounting and Tax Services Can Help you Plan Your Financial Future.
2. If you have filed an extension and were incorrect about estimated payments, you could be liable for additional penalty and interest charges.
3. Special note: If the government owes you a refund, there is no penalty for filing late.
4. However, if you still owe money to the IRS, you may be hit with penalties and interest
5. If you can’t pay the tax you owe now, A.P. Accounting and Tax Services may be able to help. Check to see what alternatives you may have.
6. It’s possible to get a short-term extension or a term plan. The IRS may even be willing to waive some penalties. You never know until you ask. For more information, check this site.
Taxpayers Who Did Not File On Time: Hard Facts and Figures
1. You face a late filing penalty of 5% of your unpaid tax bill every month for 5 months, stopping at 25%. Ouch!
2. What this means: A late filing penalty equals 5% of your unpaid taxes every month or part of a month that it goes unpaid. That charge will accrue for up to 5 months, capping the penalty at 25% of the unpaid amount.
3. You’ll be subject to a minimum charge of $205 or 100% of the unpaid tax, whichever is less if you’re over 60 days late.
4. The current IRS interest rate is 5% per year, compounded daily.
Special Note: If you pay at least 90% of your taxes owed along with your extension, you won’t pay a penalty. However, interest applies regardless.
Like Shakespeare, “All’s Well That Ends Well”
At quitting time, April 17, 5:05 p.m. ET, the IRS’ site appeared to be fully functional. As we mentioned earlier, the site had been slowed down much of Tuesday.
Treasury Secretary Steven Mnuchin reassured taxpayers. “We’ll make sure taxpayers have extensions once the system comes up”… “And it in no way impacts people paying their taxes.”
Earlier, Mnuchin told The Associated Press. “It was just a technical issue we’re working through.”
A major glitch was discovered when taxpayers accessed the tax agency’s Direct Pay system. The Direct Pay System controls direct deposit money transfers. This was part of the non-functioning site.
Time To Pay Another Way: The Terrific Take-Away for Today
2017 Taxes are Memories.
Now is the Time to Start Planning for 2018 Taxes.
Odd as it may sound, the IRS website also explains it expects you to find a way to pay your tax debt. IRS states, “Your tax payment is due although IRS Direct Pay may not be available.”
This means that if you were filing at the last minute, you should pay through the department’s other methods. That includes debit or credit cards with the associated fees.
The tax agency issued a statement that acknowledged the problem. “Currently, certain IRS systems are experiencing technical difficulties. Taxpayers should continue filing their tax returns as they normally would.” However, today, Direct Payment is apparently online and functioning smoothly.
A.P. Accounting and Tax Service remind you, now is the time to begin your tax planning for next year. Plan your tax strategy now. Putting off until “tomorrow what you could do today” has never been a great idea.
