How to avoid fines if you fail to file your tax return on time

The deadline for filing tax returns is May 17th. If you haven't already, don't panic, even if you are short on time. Better consider extending the term. How exactly, said the publication USA Today.

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The Internal Revenue Service (IRS) does not care about the reason why you did not apply for an extension to filing your tax return. You may have lost your tax records, experienced a marital emergency, or simply put off the case. Regardless of the problem, you are eligible to receive an extension until October 15th. This can give you more time to review your return and make sure you are enjoying all the tax benefits available to you.

While this may sound tempting, there are a few things to keep in mind. Applying for an extension only gives you more time to apply, not pay. This means that your payment is still due by May 17th.

Therefore, if you do not pay the estimated tax by May 17, the IRS will charge you interest on the unpaid balance.

It's important to apply or get your renewal on time so you don't get penalized for late filing and late payment. According to TurboTax, fines for not filing a tax return can be up to 25% of the tax payable. If you apply for an extension but miss the extended deadline, you will also pay this penalty.

How to apply for an extension

To apply for an extension, please send Form 4868 in electronic form until May 17. You can do it for free with Free File programsoffered by large tax preparation companies. They often help you estimate the amount of tax payable so you can make a payment.

On the subject: What are the penalties for late filing and payment of taxes in the United States?

Another option is to print the form and mail it to your state's IRS before the deadline.

Even if you apply for an extension, you still have to pay the debt by May 17th. If you underestimate this amount, you end up paying interest on what you underpay.

Who can apply for an extension

Rules vary from state to state, and each has its own rules for expanding tax reporting. Visit your state's tax office website for more information.

What to do if there is no way to pay taxes

According to the IRS, you can qualify for online payment plan or an installment payment agreement that allows you to pay off the balance over time.

When can I get my tax refund

If you are expecting a refund, you will not receive it until you file a return and the IRS has processed it.

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What to do if you live abroad

You automatically receive two additional months until June 15 to file a federal tax return without filing an extension request with the IRS if you are a US citizen or resident alien, live and work outside the United States and Puerto Rico.

You do not need to complete Form 4868 to receive this extension, but you do need to include a statement explaining why you qualify for a later date.

But keep in mind: even if you get a no-penalty renewal, you will have to pay interest on any tax not paid before May 17th.

If you are unable to apply before the automatic two-month renewal date, please complete Form 4868 to request an additional renewal by October 15th. And you need to fill it out by June 15th.

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