TAX TALK: The HARD Fall Deadlines
First, thank you for all your emails and correspondence, I truly enjoy hearing from you.
Few people realize that September and October are often the most stressful times of the year for a tax firm. That’s because individuals and tax professionals realize they can always “file an extension” in the spring and grab 6 extra months to get filed, but if you miss the hard deadlines, there can be significant consequences. Here are the 2015 “What are the tax deadlines and consequences if I miss it”? Here is what you need to be aware of:
September 15, 2016
•Final deadline to file your 2015 corporation, S corporation, or partnership tax return if you filed an extension.
• Due date for third installment of 2016 estimated tax payments.
September 30, 2016
•Final deadline to file your 2015 calendar-year estate/trust tax return if you filed an extension.
October 17, 2016
•Final deadline to file your 2015 personal or C corporation tax return if you filed an extension.
October 20, 2016
•Final deadline to resubmit a rejected return that was originally e-filed on or before October 17.
* If you're expecting a refund and miss the October 20 e-file cutoff date, you have until April 15, 2019 (October 15, 2019 if you filed an extension) to file a paper return and claim your 2015 refund
If you are owed a refund you are probably ok, the only “cost” you pay is allowing the government an interest free loan of your money for a little longer than you should have, but if you wait too long (3 years), you risk losing it all. However, if you file past this deadline and owe tax, the IRS will assess penalties and interest on the balance due. Your tax bill can jump up 50% through two penalties: Failure to file, and failure to pay.
What happens if you never file? You risk the IRS filing a return for you called a “Substitute Filed Return” or “SFR”. These SFR returns are based on all income information provided to the IRS on your account and do not include any exemptions, deductions, or credits. The filing of SFR returns typically results in a tax balance much higher than what you actually owe. Once armed with an assessed tax balance from an SFR, the IRS can then move forward with collections and begin to seize income and assets equal to the inflated balances created by the SFR.
What does captain obvious tell us? The best defense against forfeited refunds, assessed penalties and interest, IRS collections, is to make sure to just file your return on time. If the returns are late- the best action is to file them right away.
Filing tax returns can be a complex and difficult process. A tax professional can help walk you through the process and make it as painless as possible. Taking action now on late returns is critical to saving money and keeping the IRS from knocking at your door! If you need help because you missed the deadline we are here to help. Call us today at 1-844-346-3386 or visit www.CommunityTax.com for more information.
About the Author: Nick Charveron, is a licensed tax practitioner & Co-Founder of Big Rig Tax Relief LLC, a Tax Company focused on Tax Debt Resolution Services. Nick was a motor transport operator (88M) while enlisted in the Illinois National Guard, US Army. Email Nick at [email protected]