Not filing your taxes is no small matter. The government considers it a criminal offense. Penalties can be assessed for filing your taxes late, not filing your taxes at all and/or not paying your taxes. Late filing will give the least amount of overdue fees. In a worst case scenario, the government can pursue you criminally for failing to file a tax return. A 5% monthly interest charge will be added to your total tax due. The IRS can charge you up to a maximum 25% penalty.
What are your options if you are absolutely not ready to file a tax return come April 15? Well, if you find yourself unable to file your taxes come April 15, simply file for an extension. To achieve this, you will need to fill out Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax return. If approved, this extension gives you until October 15 to file your taxes.
Don’t wipe your brow in a sigh of relief about the extra six-months to file yet, let me tell you about the fine print: Filing for an extension only gives you extra time to get your paperwork into the IRS—it does not extend the time you have to pay any tax due. All tax payments are due on April 15 or you will be subject to penalty. Thus, by April 15, you need to pay at least 90% of what is due.
So what’s my rule of thumb? I think the wisest thing to do is to file your tax return early, start a filing system now to hold all your tax documents, so that next year, you will be ready to file as soon as tax season begins. In the unfortunate circumstance that you are not able to file early or by the deadline, filing something is better than not filing anything at all. Therefore, if you can’t file your return, file for an extension. And if you know you will have a tax bill, pay whatever you can on April 15.
See What Are the Consequences for Not Filing Your Taxes? | Darrin Mish, Tampa Tax Attorney - JDSupra
- IRS Proposes New Regulations for Preparers
- Business Owners Look to Extend Tax Time
- Passenger Tax in Alaska Could Drop More than 50%
- Taxes and Salaries, County by County
- Which Travel Expenses Are Safe To Deduct on Your T...
- 5 Steps To Starting a Business
- Tax Receipts Rebound as 15 Biggest States Foresee ...
- 30 Days and Counting: Homebuyer Tax Credit Expires...
- The Great Tax Season Easter Egg Hunt
- Questions for the Tax Lady: March 29th, 2010
- AT&T Plans $1 Billion Charge For Health Care
- Personal Income Drops Across the Country
- Obama Makes Two Tax-Related Recess Appointments
- CNN News: Tax Filing Tips
- Rushing to do Taxes? Avoid These 10 Last-Minute Mi...
- Economy Not Likely To Reprise '09 Year-End Growth
- Why a $14/hour Employee Costs $20
- Answers on Health Care Reform and Taxes
- A Financial Report Card, Right in Your Tax Return
- Prince & The Taxman
- Student-Loan Reform
- Latest Good Reads
- Google or China—Who Has More to Lose?
- New Home Sales Fall to Record Low
- IRS To Open More Than 180 Local IRS Offices This S...
- 10 Things you Should Know About the Tax Implicatio...
- Hawaiians Rally For and Against Tax Hike Proposal
- IRS Health Care Oversight
- Summer Job Outlook Is Cloudy
- 7 New Tax Credits Now Available Through the Recove...
- California Lawmakers Approve Tax Breaks to Create ...
- Americans Remain Skeptical Over Health-Care Revamp...
- Foreign Income Taxes
- Medicare Tax Hikes: What The Rich Will Pay
- How to Lower your Tax Liability Without Itemizing ...
- Timeline of Tax Provisions in the House Health Car...
- Questions for the Tax Lady: March 22nd, 2010
- IRS Seeks Volunteers for Taxpayer Advocacy Panel
- Illinois Hospital Loses Tax-Exempt Status for Not ...
- The Tax Advantages of Going Green in 2010
- Tax Refunds May be Up, but How are Your Withholdin...
- Volunteer, Sacramento!
- Go Kings!
- Family Finance: Credit Cards Part of College Plans...
- Greenspan Says Fed, Regulators ‘Failed’ During Fin...
- Federal Workers Owe $1B in Back Taxes
- Five Things to Look for in a Tax Resolution Compan...
- Get Money Out of Your IRA Early. No Penalty. No Pr...
- Obama Signs Jobs Bill, Says More Must Be Done
- Latest Good Reads
- Senate OKs Jobs Bill for Obama's Signature
- Mcdonald's Co-Owner Admits Cheating IRS Out of Mor...
- Kids Caught In Medicaid Pay Crossfire
- No Federal Estate Tax, but What About your State?
- What Records to Keep for your Taxes
- Sacramento Business Owner Settles 4-Cent IRS Tab A...
- U.S., U.K. Move Closer to Losing Rating, Moody’s S...
- Beware of IRS’ 2010 “Dirty Dozen” Tax Scams
- 7 Lucky Tax Prep Tips to Celebrate St. Patrick's D...
- Questions for the Tax Lady: March 15th, 2010
- IRS Investigates Flurry of Threats Against its Wor...
- Some States Delaying Tax Refund Payments
- IRS visits Sacramento Carwash in Pursuit of 4 Cent...
- U.S. Sales Tax Rates Hit Record High
- The Humbling of Toyota
- U.S. Dollar Is Still The World's Most Trusted Curr...
- What you need to know about failing to file a tax ...
- American Pickers TV Show and Vintage Cars
- California Revenue Jumps, Tax Refunds Should Be Pa...
- Health-Care Reform's 'Back-Door' Tax
- How Greece's Debt Crisis Affects America
- Dodd to Offer Financial Regulation Bill Without G....
- Latest Good Reads
- IRS Outlines Steps to Assist Taxpayers?
- House Votes for Faster Tax Breaks for Chile Gifts
- Finance Reform Bill May Exempt Payday Lenders
- California's Tax Tactics Undermine Prosperity
- 10 Tax Friendly Ways to Spend your Refund
- Senate to Take Up Unemployment Insurance Extension...
- CNN Headline News Appearance
- Battle Lines Redrawn in Web Sales Tax War
- U.S. Minted More Millionaires In 2009
- Questions for the Tax Lady: March 8th, 2010
- National Debt to be Higher than White House Foreca...
- Federal Pay Ahead of Private Industry
- Obama's Proposal to Limit Itemized Deductions to 2...
- How to Tackle Your Tax Bill
- Rangel Departure Highlights Undone Tax Agenda
- Lawmakers Push to Add Bonus Tax to $150 Billion Bi...
- I'm a Medicare doctor. Here's what I make
- Latest Good Reads
- Health Effects of IRS Collections
- How to Get High Quality Tax Service
- Tax Incentives to Adopt a Child
- U.S. Economy: Service Industries Expand More Than ...
- Fewer Taxpayers to Pay Off Debt with Refunds
- Roni Deutch Tax Center and NJ Nets to Will Offer F...
- Bye-bye, Saturday Mail?
- Debt: The Big Hangover Has Only Just Begun
- Tips to Find Affordable Health Care
- ▼ March (105)
- ► 2009 (987)
- ► 2008 (410)
- ► 2007 (191)