Tax tips for the April 15 filing deadline
Tax Day is just around the corner and FOX 13’s Craig Patrick shares the latest information ahead of the April 15 deadline.
Fox – 13 News
Unless you are a paper filer, the deadline to pay your taxes is April 15th.
Changes at the U.S. Postal Service could mean the deadline for mailing tax returns could be as early as April 9, tax experts say.
In January, the USPS announced that changes to its shipping operations meant that some mail items might not arrive the same day they were dropped off at processing facilities. Because mail is automatically postmarked at the processing facility, the postmark date does not necessarily correspond to the date the mail carrier collects the customer’s mail or drops it at a retail store.
If it’s not postmarked on or before April 15, the IRS will consider your tax return and payment late. Late returns can result in IRS penalties and interest on the amount you owe.
How much is the IRS penalty?
The IRS penalizes people who owe money for late filing of tax returns. Calculated from the due date and includes:
- Submission failure: 5% of the taxes due each month, or part of the month, can be filed up to 25% late. If your return is more than 60 days late, you will also be subject to a minimum late filing penalty. The minimum penalty is the lesser of $525 or 100% of the unpaid tax for the current year.
- Payment default: 0.5% of unpaid taxes will be added for each month or part of a month from the filing deadline until taxes are paid in full, up to a maximum of 25%. If taxes remain unpaid 10 days after the IRS issues a Notice of Intent to Seize Assets, the penalty increases to 1%.
- interest: Unpaid taxes will be charged at interest rate determined quarterly by the federal short-term interest rate plus 3%. Daily interest increases. In the first three months of this year, the rate was 7%.
How many taxpayers could be affected?
The IRS said it processed more than 165 million individual income tax returns last year. Approximately 94% were submitted electronically, and 6% (approximately 11 million) were submitted on paper.
However, not everyone will be penalized for late returns. Taxpayers who do not owe taxes or owe a refund generally do not have to pay penalties or interest.
How can I avoid return delays?
To avoid potential filing delays caused by USPS changes, H&R Block tax experts suggest:
- Please mail your return at least 3 to 5 business days before the April 15 deadline to ensure it arrives on time.
- Stand in line at your local post office and have your return postmarked by hand. The USPS states that “manual postmarks will be applied free of charge.”
- File your tax return electronically by April 15th. According to Taxpayer Advocate, an independent organization within the IRS that serves taxpayers, “e-filing is the safest, fastest, and most accurate way to file your tax return.”
- If you are at risk of missing the deadline, please request an extension. The extension must be filed by April 15th, so you have until October 15th to file your taxes. However, it is important to note that an extension is a file extension, not a pay extension. If you believe you owe taxes, you must do so by April 15 or you will be assessed a penalty on the unpaid amount.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
