You can file or you can rack up IRS penalty fees; the choice is yours!
The very last day to E-file 2014 tax returns was October 15, 2015. If you’re reading this after the October 15th deadline, you can still prepare your return online. You’ll just need to paper-file it instead of E-filing it. That being said, without a tax extension, your 2014 tax return will be considered late if it is filed after April 15th, 2015.
If you’re expecting a refund from your 2014 taxes, you won’t be penalized for filing late. However, if you have tax due, you’ll face IRS late penalties for filing after April 15th.
Beware of IRS late penalties!
Plan on filing after the April 15th deadline? If you have tax due, you could end up with a tax bill costing you an arm and a leg.
IRS late fees include the following:
Failure-to-file penalty: the penalty for filing late is 5% of the additional taxes owed amount for every month (or fraction thereof) that your return is late, up to a maximum of 25%
Failure-to-pay penalty: late payment penalty is 0.5% (1/2 of 1 percent) of the additional tax owed amount for every month (or fraction thereof) the owed tax remains unpaid, up to a maximum of 25%
Plan ahead and file an extension
Although you cannot file for a tax extension on your 2014 tax return any longer, it is always smart to be ahead of the game for next tax season. If you happen to be in the same situation next year as you were this year with your taxes not getting filed by the April 15th deadline you’ll want to at least take a few minutes out of your day and do the following:
File an extension: Avoid the failure-to-file penalty by filing an extension. Doing this will give you until October 15th to file.
Make a payment: Even if you file an extension, late payment penalties and interest start applying to your tax bill on April 16th (AKA the very next day after the deadline). If you can, pay off your tax bill when filing an extension. If you don’t have the money to pay the full bill, make a partial payment. The less you owe and the sooner you pay it off, the better.
Avoid more late fees by filing today
The penalty for filing late can be ten times higher than the penalty for paying late. At the very least, file your tax return as soon as you can.
Why not get it out of the way today? You’ll have to file sooner or later.
To get started, create an account. If you have any questions along the way, reach out to the PriorTax team by phone, chat or email. We’re here to help!