Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses the October tax extension deadline, including his top 3 things to keep in mind.
It’s Never Too Late to File
This year’s tax extension deadline falls on Tuesday, October 15th. If you haven’t got around to filing, remember it’s never too late. The failure to file penalty accrues at 4.5% per month, so the sooner you submit your tax return, the better you can mitigate expensive penalties and interest. If left unchecked, the failure to file penalty can increase your tax balance by 22.5%!
Pay Your Taxes ASAP
If you haven’t paid your taxes yet, it’s crucial to know that penalties and interest have been accruing since the April due date. You should pay your taxes as soon as possible to avoid these extra fees, especially at a time when interest rates are high. Each month the failure to pay penalty can add an additional .5% of your unpaid tax balance and up to a total of 25% if not addressed.
Remember to Pay Estimated Taxes
If you’re self-employed, October 15th isn’t the only deadline you should have noted in your calendar. The Q4 estimated tax payment is due on January 15, 2025. If you miss an estimated tax payment, the IRS may charge you a penalty for underpayment. The penalty is calculated based on how much you underpaid and how long the amount was unpaid, so be sure to get this done on time and correctly. Optima Tax Relief has over a decade of experience helping taxpayers get back on track with their tax debt.
Join us next Friday as Phil will discuss 3 things the IRS will never do and how to report tax scams.
If you need tax help, contact us today for a Free Consultation