We would like to thank the many individuals and companies who trusted MBAF to prepare their returns this tax season. We also want to take this opportunity to remind you, that for some of you, tax season may not be over yet.
If you are a regular client of MBAF, you can rest assured that all filing deadlines were met, or extensions were applied for appropriately. However, if you are not already working with us, and could not file your returns by the April 18th deadline, here is what you need to know.
If you are due a refund, there is no reason to panic; you have until April 18, 2020 (October 16, 2020 with an extension) to file an original tax return with the IRS before the statute of limitations runs out. However, if you failed to file on time, and owe taxes, the time to act is now. The longer you delay, the more interest and penalties continue to add up.
If you believe you will have a tax liability, hopefully you have already submitted Form 4868 which will extend the time for filing your 2016 tax return until October 16th, 2017. But, it is still smart to pay as much as you can now, and file as soon as possible to avoid additional interest and penalties.
If you were not working with a tax professional, and could not make the tax filing deadline, here are some other tips provided by the IRS:
- E-file is your best option. IRS e-file programs are available through Oct. 15. E-file is the easiest, safest and most accurate way to file. With e-file, you will receive confirmation that the IRS has received your tax return. If you e-file and are due a refund, the IRS will normally issue it within 21 days.
- Pay as much as you can. If you owe tax but can’t pay it all at once, you should pay as much as you can when you file your tax return. Pay the remaining balance due as soon as possible to minimize penalties and interest charges.
- Installment agreements are available. If you need more time to pay your federal income taxes, you can request a payment agreement with the IRS. Apply online using the IRS Online Payment Agreement Application tool or file Form 9465, Installment Agreement Request.
How MBAF Can Help
There can be any number of reasons to have missed the tax filing deadline. We can help you to work through the reasons you could not file on time, and then file a return as soon as possible, so as to minimize your interest and penalties.
Remember, even if you filed your returns on time, and/or are working on an extension, “Tax Season” doesn’t necessarily end, simply because it is past April 18th. It is never too soon to start tax planning for next year.
Have you had a significant change in earnings this year, or experienced a major life event such as the birth of a child, marriage, or divorce? These things can all impact your tax planning strategies and should be discussed with your tax advisors as soon as possible.
Compliance with and understanding tax laws can be complex, particularly for those who have just entered the work force. If you would like to benefit from our expertise in these areas, or if you have further questions on this Advisory, do not hesitate to contact our Tax and Accounting Specialists, or call us at 1-800-239-1474.