Tax Day is quickly approaching, and millions of Americans are scrambling to meet the deadline. With the IRS expecting millions more tax returns to be filed by April 15, taxpayers are urged to take advantage of the various resources available to them. Whether it’s filing for an extension, seeking last-minute help, or applying for a payment plan, there are options to ensure a smooth tax season.
For most people, the deadline to file federal income tax returns and extensions is Monday, April 15 at 11:59 p.m. However, taxpayers residing in Massachusetts or Maine have until April 17 due to the observance of the Patriots’ Day holiday. Additionally, Tuesday is the Emancipation Day Holiday, which further extends the deadline. It’s important to know the specific deadline based on your location to avoid any penalties.
The IRS Commissioner, Danny Werfel, emphasized that taxpayers have many avenues for last-minute assistance. The IRS website, IRS.gov, offers free tools that can help with basic tax law questions, provide free filing options, update refund status, and even request an extension for more time to file. To accommodate taxpayers during the final weekend of tax season, 70 IRS locations will have special Saturday hours.
If you need more time to file your taxes, you can request an extension by filing before April 15. This will grant you an additional six months to file your taxes, with a new deadline of October 15. However, it’s crucial to note that an extension only applies to filing your taxes and not making payments. Failure to pay by April 15 will result in penalties and interest payments.
What happens if you miss the tax deadline and fail to file for an extension? The IRS imposes several penalties in such cases. A failure-to-file penalty is calculated at 5 percent of the unpaid taxes for each month the tax return is late. Additionally, if you owe taxes but didn’t pay them before the deadline, you will receive a failure-to-pay penalty. Interest will also be charged on both taxes and penalties owed.
However, if you are due for a refund, you will not receive a penalty, and your tax return payment will be processed. In certain circumstances where you were unable to file or pay your taxes on time, you may be eligible to remove or reduce your penalty. If the amount owed is substantial, the IRS offers payment plans that allow you to pay off your taxes over time.
To streamline the tax filing process, the IRS strongly recommends filing taxes electronically rather than using regular mail. This not only avoids delays in receiving your refund but also minimizes the risk of errors. Tax software is designed to guide individuals through each section of their tax return using a question-and-answer format while ensuring accurate calculations.
The IRS’s “Where’s My Refund” tool is another valuable resource for taxpayers. After filing their taxes electronically, individuals can use this tool to obtain a status update on their refund. Typically, an update appears approximately 24 hours after filing the current-year return.
As of April 5, the IRS has received 101.8 million returns and processed 66.8 million refunds this tax season. The average refund amount is approximately $3,011, a slight increase from last year’s $2,878. Out of the total $201.1 billion in refunds processed, the majority have been sent via direct deposit.
With Tax Day just around the corner, it’s essential to be aware of deadlines, extensions, and refund options. By utilizing the resources provided by the IRS and filing electronically, taxpayers can ensure a smooth and efficient tax season. Remember, it’s never too late to seek assistance or explore payment plans if needed.
