global Tax Are You Ready for the April 18th Tax Deadline? March 14, 2022 Get your taxes done by April 18th or file an extension if you need more time! April 18th marks the last day to get your returns in—here’s what you need to know. Why April 18th? You’ll remember that Tax Day is usually April 15th unless it falls on a weekend or holiday in which case it is pushed to the next business day. Emancipation Day is being observed in the District of Columbia on Friday, April 15 this year, hence the April 18th deadline. Any exceptions? Maine and Massachusetts taxpayers will have until April 19, 2022 to file their returns as the Patriot's Day holiday is observed on April 18th. Additionally, victims of several recent natural disasters have been granted extensions this year. This includes victims of severe storms and tornadoes in Arkansas, Illinois, Kentucky and Tennessee and victims of wildfires and straight-line winds in Colorado—these individuals will have until May 16th to file. Are there extensions available? Yes, if you are unable to get your filing done by April 18th, you can request an extension to October 17th . (October 15th is on a Saturday this year!) Keep in mind this six-month extension does not apply to taxes owed—you must pay, regardless of filing an extension, by April 18th. Some States, like Rhode Island and Massachusetts can reject an extension request if payment is not made with the extension, which could mean a late filing penalty assessment. The IRS will allow extensions without payment but will assess late payment interest. They will not assess the late filing penalty, however. What is the failure-to-file penalty? Typically, the penalty for filing late is 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. This starts accruing the day after the deadline and will not exceed 25 percent of your unpaid taxes. What is the penalty for failing to pay? Failing to pay results in a penalty of ½ of 1 percent of your unpaid taxes. This applies for each month or part of a month after the due date and begins accruing the day after the tax filing deadline. Questions? Need advice on your individual situation? Reach out to us.
