The IRS issued a new press release yesterday, offering some reminders for those last minute filers out there. Their tips include:
Don’t Miss the Deadline
If you have a balance due and don’t file a tax return by April 15, you face interest on the unpaid taxes as well as a failure-to-file penalty. Interest and penalties are added to your balance due. If you can’t file by the deadline, request an extension of time to file (see below).
If you file on time or request an extension but don’t pay all or some of the balance due by the deadline, you will incur interest on the unpaid amount and a failure-to-pay penalty. If you can’t pay the full amount, you should pay as much as possible by the deadline to minimize interest and penalties.
Get Recovery Tax Breaks
Last year’s American Recovery and Reinvestment Act created a full slate of tax breaks, which can be claimed on tax returns right now. These include:
- The Homebuyer Credit
- Making Work Pay Credit
- American Opportunity Credit
- Home Energy Credit
- New Car Tax and Fee Deduction
You can get information on these and other Recovery credits at IRS.gov/recovery.
File Electronically
Most tax returns are now filed electronically – either from home, using purchased tax software, or by a tax professional or through Free File.
There are several reasons the IRS encourages taxpayers to file electronically. Here are two big ones:
- E-file is accurate: Most available tax preparation programs check for errors and missing information, reducing the chances of delayed refunds or follow-up correspondence from the IRS.
- E-file is fast: With most tax software, you can file a state tax return at the same time you file your federal return. Once a return is accepted for processing, the IRS electronically acknowledges receipt of the return. And refunds take only about half the time of a paper return. If you choose direct deposit, you will get your refund in even less time.
Continue reading at IRS.gov…