PBA Tip of the Day brought to you by Kerry Freeman with Freeman Income Tax Service (623) 518-2157.
For taxpayers who requested an extra six months to file their 2017 tax return, the extension deadline is Monday, October 15, 2018 for most taxpayers.
For those who have not yet filed, here are a few tips to keep in mind about the extension deadline and taxes:
If you timely requested an extension of time to file your individual income tax return and paid at least 90 percent of the taxes you owe with your request, you may not face a failure-to-pay penalty. However, you must pay any remaining balance by the extended due date.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the lesser of $210 or 100 percent of the unpaid tax.
The failure-to-file penalty is usually five percent of the tax owed for each month, or part of a month that your return is late, up to a maximum of 25%.
The failure-to-file penalty is generally more than the failure-to-pay penalty. You should file your tax return on time each year, even if you’re not able to pay all the taxes you owe by the due date. You can reduce additional interest and penalties by paying as much as you can with your tax return. You should explore other payment options such as getting a loan or making an installment agreement to make payments.
Members of the military and those serving in a combat zone generally get more time to file. Military members typically have until at least 180 days after leaving a combat zone to both file returns and pay any tax due.