Tax season can be a stressful time for many individuals and businesses, but the U.S. Internal Revenue Service (IRS) is offering a simple method to ease the burden. Taxpayers who need more time to file their taxes can take advantage of the IRS Free File service to request a six-month extension. However, it’s important to note that while the extension allows for additional time to file, it does not extend the obligation to pay taxes by the original deadline.
The deadline for filing 2023 taxes this tax season is April 15, but taxpayers can extend the deadline to October 15 by using the IRS Free File program. This program is available to all individual filers, regardless of income. Taxpayers must estimate their tax liability and file by the deadline in order to receive the extension. It’s crucial to remember that any taxes owed must still be paid by the original deadline to avoid penalties and late fees.
For taxpayers residing in Maine and Massachusetts, there is a slight extension due to holidays, allowing them until April 17 to file and pay their taxes. Additionally, certain taxpayers will automatically receive an extension without needing to request it. Military members serving outside the United States and Puerto Rico will receive a two-month extension, with a filing deadline of June 17. Military personnel serving in combat zones will have an additional 180 days after leaving the zone to file and pay taxes.
U.S. citizens and resident aliens who live and work outside the country and Puerto Rico also receive an extension until June 17. Furthermore, if an area has been declared a disaster region by the U.S. president, the IRS can postpone tax deadlines for citizens and businesses in that area. A full list of disaster areas that qualify for an extension can be found on the IRS webpage.
When it comes to paying off tax dues, the IRS is willing to work with taxpayers who cannot pay the full amount they owe. Most taxpayers can set up a payment plan on IRS.gov to pay off their balance over time. There are two types of payment plans available: a short-term plan for those who wish to pay off the dues in 180 days or less, and a long-term plan that involves monthly installments. To qualify for a short-term plan, the taxpayer must owe less than $100,000 in taxes, penalties, and interest. For a long-term plan, the taxpayer must owe less than $50,000 and have filed all the required returns.
A short-term payment plan does not have a setup fee, while a long-term plan charges a $31 setup fee for automatic withdrawals. However, this fee is waived for low-income taxpayers. In case of non-direct debit payments, the plan can charge $130, with low-income individuals paying $43, which may be reimbursed under certain conditions. The IRS suggests that if taxpayers are unable to pay their taxes in full, getting a loan to pay the balance amount could be a cheaper option in many cases.
To avoid processing delays and refund adjustments, the IRS has highlighted a list of tax return mistakes that taxpayers should avoid. It’s recommended to collect all necessary documents and supporting paperwork, such as tax deductions or credits, before filing the returns. The IRS advises citizens to use electronic-filing methods like IRS Free File or the Direct File pilot available in certain states. Electronic filing minimizes mathematical errors and identifies potential tax credits or deductions for which the taxpayer qualifies. Opting for electronic filing and selecting direct deposit is also the fastest and safest way to receive a refund.
Finally, all taxpayers must ensure they fill out a checkbox regarding digital assets on their tax returns. This question must be answered by all taxpayers, regardless of whether they engaged in a transaction involving digital assets in 2023. It’s important to report all income related to digital asset transactions.
In conclusion, the IRS is offering taxpayers a simple method to extend their tax filings by six months through the use of the IRS Free File service. While this extension provides additional time to file, it’s important to remember that taxes owed must still be paid by the original deadline. The IRS is also willing to work with taxpayers who cannot pay the full amount they owe, offering payment plans to help ease the burden. By avoiding common tax return mistakes and utilizing electronic-filing methods, taxpayers can ensure a smoother and more accurate filing process.
