The penalty eventually maxes out at 25% of your unpaid tax balance. The failure-to-pay penalty is 0.5% of your total taxes due for every month you still owe. If you don’t pay, penalties and interest start accruing on the money on the day after tax day.Īs long as you file an extension, you can avoid the failure-to-file penalty but there’s a separate penalty for not paying an outstanding balance. If you owe money to Uncle Sam, you’re still expected to pay up by the Apfiling deadline. But it does not give you an indefinite amount of time to settle up on your outstanding tax bill. Getting a tax extensions means you have more time to file your tax return. Filing an Extension Doesn’t Mean You Don’t Have to Pay However, it’s not a simple matter of just filing a form. You can also use one of the many tax prep software programs to file the extension. You can use Free File through the IRS website to file the form. As with your 1040 form, you can file a paper form or do it online. The deadline to file your 2021 taxes is April 18, 2022. If you need to file an extension on your taxes, you’ll need to file IRS Form 4868 (Application for Automatic Extension of Time To File U.S.
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