It's Starting to Look a Lot Like Tax Season!

We posted an important tax filing dates to remember a few blogs ago and one of the important dates we mentioned is here! Though it may seem strange for October to be important for taxes, it is!

If you postponed your tax filing with an extension, the day to turn your taxes in is fast approaching and there isn't an option to delay it further. Hopefully this is the perfect reminder to get them turned in before you incur a fee. On October 17th, 2022, all tax filing forms pushed back with a properly filed extension will be due, which means you have exactly 7 days to get everything in on time. If you do not owe taxes in 2021, you will avoid a penalty, but this likely means you are owed a refund, so the sooner you can file the better to ensure you receive your return.

Did you file your taxes in April and were unaware of circumstances in which you can file for an extension? Here are a few for next year if things arise causing you to need more time:

• Missing forms or information needed to prepare your taxes on time. Requiring more time to find the proper receipts or paperwork are good examples.
• Circumstances arose such as a family member's death or major life change causing confusion on how to file your taxes, require more time or advice from an expert.
• Either due to work or vacation, you are out of the country when taxes are due.
• You are active military overseas, similar to the reason above.
• You have switched tax representatives and they need more time to collect your tax information for filing.
• A business is newly formed and more time is needed to ensure taxes are properly filed.

If you fit into one of these above reasons and you already filed for an extension, only letters directly to the IRS can request more time and unless its the very first time asking for another extension, with very good reason for it, you'll mostly likely be denied. This means that October 17th, 2022 is the very last day to file before the IRS brings down the hammer so to speak and penalizes you. Both individual and business filers need to understand that penalties and fees accrued will be costly and affect how the IRS sees you in the long-run disallowing leeway in future circumstances. Not only that, but if a lot of money is owed, the fees will be proportional to that number. The longer you wait the more costly it will be in the long term. If the amount owed is high, delaying it will not solve the problem. The only way to possibly avoid a huge up-front cost is to hire a professional local CPA firm or ask the IRS for a payment plan which will allow for more manageable payments. A simple first payments (which won't cover the full amount) will avoid fees and keep the IRS from harassing you with letters.

If taxes and their late filing penalties scare you, trust your local friendly tax specialists at Geyer and Associates. We will guide you through filing your taxes or help you ask for an extension when the time comes.