Everyone knows that April 15th is the date to file taxes. But by what time? And what happens when someone doesn’t file in time? Last year, just before the well known April 15th deadline, the IRS stated that it had received nearly 100 million returns. It expected that 35 million would come in just under the wire, and that 12 million would ask for deadline extensions. That means almost 24% of filers do it last minute and 8% request extensions. So anyone struggling to finish their taxes should know they’re not alone. Here are more details about the personal tax filing deadlines and what to do in order to file taxes late.
Returns need to be postmarked April 15th
Other mail services offer pick ups, however their pick up times vary by neighborhood and company. Most need a day’s advance notice to schedule a pickup. Both UPS and FedEx have drop off boxes. UPS has a list of locations here, and FedEx here. The best way to verify the pick up times is by checking the box itself.
Electronically filing gives you until midnight, April 15th
Read: How To File Taxes Online
However, waiting until the very last minute before midnight could still be dangerous. Many other filers will be waiting until this very minute as well. While electronic filing has matured, there is still a risk that a server somewhere could go down and the return not go through. Submitting before midnight, if possible, could save heart ache.
You can file for an automatic 6-month extension
Read: How To File For a Tax Extension
There is a caveat to filing for an extension: it’s not free. While the larger penalties that are levied for not filing at all don’t apply, there is a smaller monthly interest charge on any money you owe the IRS when you do file your final taxes. It is half a percent a month. However it can give a taxpayer breathing room to finish working on taxes. And the penalty of half a percent a month is far better than the 4.5% a month penalty levied against individuals who do not file at all.
Missed the filing date? You should still file ASAP
As mentioned above, the interest charged for someone who doesn’t file is 4.5% a month. That comes out to 54% a year. The sooner someone files taxes, the sooner that large interest rate gets dropped to something smaller and more manageable. Filing as soon as possible stops taxes owed from growing larger and larger. The government also offers methods to assist taxpayers who owe more taxes than they currently pay. There are extensions and payment plan options than can help repayment. Many of these are covered in Money Nation’s What To Do If I Can’t Pay My Taxes? To file your taxes late, you go about filing them the same way as if you were doing them before April 15th, using paper, software, online services or an accountant.
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