If you need to file a tax extension, you’re not alone. Many people need the extra time to file their individual taxes. The good news is that all taxpayers are allowed to file an extension that grants them an additional 6 months. But here’s the thing—Just because you have an extension, that doesn’t mean you won’t be charged extra.
Tax Extensions May Come With Interest Payments & More
Most people don’t realize that taxes are still due on April 15th, even if they’ve filed for an extension. This means that interest can accrue on any unpaid balance for each month the taxes go unpaid. But it doesn’t stop there.
Unless you can demonstrate reasonable cause, you could possibly face failure-to-pay penalties for each month after the due date. In addition, you could also be charged a failure-to-file penalty for each month that your filing is late.
You can find the details of these interest payments and penalties here, but the combined cost of these penalties could reach up to 47.5% of your taxes. Needless to say, you want to get your taxes done correctly and on time!
Get Your Tax Services Consultation
Integrated Accounting & Tax, LLC is a woman-owned accounting firm with services tailored to each client’s unique needs and goals. We guarantee that every service we provide is essential and propels your goal.
Contact us today for a free tax services consultation. We have locations in Prior Lake, MN, and Ft. Lauderdale, FL, and can provide service to surrounding areas.