It is important not to miss the deadline for submitting the income tax return as it attracts penalties and extra interest. Getting to know the major deadlines and the fact that non-compliance can lead to certain penalties will enable you to manage your taxes effectively and avoid complications during the process. In this blog post, we will discuss the basic income tax return filing dates and the consequences that follow not filing the income tax returns on time.
Income Tax Filing Deadlines
1. April 15th: Individual Tax Return Deadline
The principal individual tax filing due date is the 15th of April. This is the tax deadline for filing Form 1040 and paying the federal income tax if you owe. If the original deadline is on or before April 15th the due date is the next business day while if it is after then, the due date is April 15th provided it is not on a weekend or holiday in which case the due date is the following business day.
2. October 15th: Extension Deadline
If you fail to file your income tax return before the end of the traditional April 15th deadline, you can ask for a six-month extension by filing what is known as Form 4868. This effectively extends your filing deadline to October 15th. It is also worthy to make it clear that an extension to file is not an extension to pay. You are also required to assess and make payment of any taxes that are due before the 15th of April to avoid further charges in the form of interest and penalties.
3. June 15th: Deadline for U.S. Citizens Living Abroad
To show its consideration for overseas U. S. citizens and resident aliens, the I.R.S. provides an automatic two-month extension to the due date to file the income tax return which falls on June 15th. It also extends to members of the military serving in foreign territories or those on active duty. This is similar to the extension to file, but not to pay which was given on April 15th.
Penalties for Missing the Filing Deadline
If an individual does not file the income tax return on time, many penalties are imposed on that individual, and they include:
1. Failure-to-File Penalty
The failure-to-file penalty can be as high as 5% of the unpaid taxes for each month or a part of a month that an income tax return is filed late. The maximum penalty can easily be up to 25 % of the unpaid taxes. If your return is more than 60 days past, the minimum penalty is $435 or 100 percent of the tax you still owe, whichever is smaller.
2. Failure-to-Pay Penalty
If you fail to meet your tax obligation by the due date, it will attract a failure-to-pay penalty. This penalty is 0. Being a penalty for how long the taxes have remained unpaid, it is 5% of the unpaid taxes for each month or part of a month, up to the maximum of 25% of the unpaid amount of taxes. If the penalty for failure to file is in force simultaneously with the penalty for failure to pay, then the penalty is 5% for the month.
3. Interest Charges
Besides penalties, interest charges are imposed and computed from the date of the return up to the date of the payment of the tax. The interest rate is set at the beginning of each quarter and is equal to the federal short-term rate plus 3%.
Key Takeaways
To be exempted from these penalties, one should ensure that they have filed their income tax return and also have paid all the taxes by the required time. If you cannot do that, at least you can negotiate with the IRS on how you will be able to pay in installments. Taking an extension if you need more time to gather your documents is also advised, but it is important to submit an estimation of your tax payments before the deadline for the extension.
Filing income tax returns can be a bit stressful, however, the help of an online application will enable one to meet all the set deadlines. Usually, online applications are accompanied by notifications, self-checking, and instructional prompts, thus enabling submitters to file correct papers at the right time.