April 18^th marks the last day to get your returns in—here’s what you need to know.

Why April 18^th?

You’ll remember that Tax Day is usually April 15^th unless it falls on a weekend or holiday in which case it is pushed to the next business day. As we mention in our blog, 2022 Filing Season Begins January 23rd, IRS Confirms Emancipation Day is being observed in the District of Columbia on Monday, April 17 this year, hence the April 18^th deadline. Additionally, Patriot’s Day (observed in Maine and Massachusetts) is being celebrated April 17^th this year.

Any exceptions?

• Victims of storms in California have been granted an extension to October 16, 2023 for both their federal and state tax return. The IRS is also granting relief to those affected by storms in parts of Georgia and Alabama who will also have until October 16^th to file and pay their federal individual income tax returns.
• Arkansas, Indiana, Mississippi and Tennessee storm victims have until July 31, 2023, to file various federal individual and business tax returns and make tax payments
• Florida storm victims have until August 15, 2023
• Oklahoma storm victims have until August 31, 2023

Are there extensions available?

Yes, if you are unable to get your filing done by April 18^th, you can request an extension to October 16th . (October 15^th falls on a Sunday 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 18^th.

Some States, like Rhode Island and Massachusetts, can reject an extension request if a 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.