Life can be extremely hectic, which is why with tax season coming to a close, you might feel like you just don’t have time to get your taxes filed by the deadline this year. However, there are many different reasons why you should put in the effort and the time to get your taxes filed by the time tax season ends. These include the following:
• If you do not file your taxes by the deadline, you might have to pay a failure-to-file penalty.
• If you end up not paying the failure-to-file penalty, you could also be stuck with a failure-to-pay penalty. This penalty is generally much more than the failure-to-file penalty.
• When you file your taxes late, you will likely owe up to five percent for any taxes you have yet to pay for every month your return is late. However, this penalty will never exceed 25 percent of the amount you owe in unpaid taxes.
Keep in mind that even if you can’t get your taxes done by the time tax season comes to a close, it is always better to request a filing extension rather than ignore the requirement to file. When you request an extension and you pay at least 90 percent of the taxes you owe, you will not have to pay a failure-to-pay penalty.
At Cathy E. Parker, E.A. Bookkeeping & Tax Service, we realize life can be busy, which is why we make filing your taxes an easy, stress-free process. Contact us today to schedule a time for us to do your taxes before the filing deadline arrives!