TAXPAYERS have just weeks to file their returns before the IRS deadline to avoid potential penalties.
The IRS has set the tax return deadline for April 18 this year, a small change due to holidays.
According to the IRS, Americans received an average of $2,775 in tax refunds in 2021, an 11 percent increase from the previous year.
Some people didn’t get their tax refunds until November 2021 due to multi-month delays and backlog issues with the IRS.
How much you get back on your tax return depends on several factors, including how early you file your tax debt and loan claims.
WAYS TO AVOID PENALTIES
For those taxpayers unable to meet the April 18 deadline, there is a simple online option that may increase your time to complete your returns.
Taxpayers who need more time to complete their returns can request an automatic extension of the deadline by six months.
An extension allows for additional time to collect, prepare, and file documents with the IRS; However, taxpayers should be aware that:
- An extension of the deadline for filing your tax return does not grant you an extension of the deadline for paying your taxes.
- You should estimate and pay any taxes owed by their regular deadline to avoid potential penalties.
- You must submit the extension no later than the regular due date of your return.
Taxpayers can file their taxes online using the IRS Free File to request an automatic tax return extension.
Individuals may request an extension electronically on Form 4868 PDF.
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By submitting this form, taxpayers have until October 17 to file their tax return.
To receive the extension, taxpayers must estimate their tax liability on this form and pay all amounts due on time.
Other free ways to get an extension include using IRS Direct Pay, the Electronic Federal Tax Payment System, or paying with a credit or debit card or digital wallet.
There is no need to submit a separate renewal request on Form 4868 if you are making an electronic payment and indicating that it is a renewal.
The IRS automatically counts it as an extension.
WHAT HAPPENS IF YOU DON’T SUBMIT YOUR TAXES?
Failure to file your taxes on time can result in penalties of hundreds of dollars.
For example, if you are affected by the so-called “default penalty,” the IRS will send you a notice or letter.
Expect a penalty of 5 percent of your unpaid taxes, which can go up to 25 percent depending on how late you filed your tax returns.
If you are more than 60 days late in filing your tax return, you will be fined $435 or 100% of the tax you owe, whichever is less.
It’s important to note that the IRS charges interest in addition to the penalties.
In 2021, people under the age of 65 who earned less than $12,550 did not have to file taxes.
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https://www.the-sun.com/money/5009869/taxpayers-weeks-left-file-returns-irs-deadline/ Taxpayers only have WEEKS to file tax returns – see how to avoid penalties if you can’t make the deadline