Tax extension deadline is quickly approaching, Oct. 17
HATTIESBURG, Miss. (WDAM) - You don’t have much longer to look over and submit some very important information to the government - the Internal Revenue Service, that is. The tax extension deadline is October 17, less than two weeks away.
Tax preparer Jeanella Rahming said an extension is simply filing your taxes at a later date.
“Sometimes we don’t really sit down and take care of everything we need to take care of to file on time,” said Rahming.
Time is ticking to file your taxes if you failed to do so the first time back in April.
“Those taxpayers that have filed an extension for the 2021 tax year, those extensions are due by October 17,” said Rahming.
Tax season is generally from January to April. However, things can get busy in Washington, D.C., and Rahming said the filing time frame varies each year, depending on when the IRS starts accepting tax returns.
“If you filed an extension and do not file by October 17, you will be assessed a five percent penalty on the taxes due per month, not to exceed 25 percent of the balance due,” Rahming said.
So, what does that mean? The IRS said an extension is not an extension to pay if you owe.
“For example, if you have a $1,000 balance due and you do not file your taxes within the allotted time for the extension, starting the following month, 5% of that $1,000 will be assessed every month until you file that tax return,” she said.
To avoid those penalties, it’s best to gather all your documents and visit a tax professional.
“If you don’t have all your documents together, that’s ok,” Rahming said. “Consult your CPA, accountant, your tax preparers and let them know you might not have everything available. They can use a form 8821 and pull your transcript from the IRS to ensure that they are filing everything accurately,” she said.
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