As the tax season winds down, there are those who will either file a return or an extension. Failure to file return or extension April 17th, the IRS may assess interest charges on any unpaid federal taxes owed and a "failure to file" penalty to 5 percent per month, or part of a month of the taxes due, up to a maximum of 25 percent of the total due. If your return is more than 60 days late, you may be subjected a minimum penalty of $135,00. The sooner you file, either a return or an extension the less likely you are to owe the IRS, even if you can't pay all or some of the taxes due. When you do file an extension, the IRS doesn't ask for a reason for the extension on your personal or business taxes. As long as your information is filled out and submitted properly and on time, the IRS will grant you an automatic extension, the same principal applies when filing a return. The information you need to file is.
your name, names birth dates, year of birth, social security numbers of dependents you are claiming (be sure that the number, dates, year of birth and for women, names match the information with Social security. Failure to do so will cause the return to reject. All must match the data the Social security has on file.) Any data regarding your taxable income and having on hand your last year's return be helpful. If you need to file an extension and you need the forms, you can go to IRS.gov and on the IRS page, you will see where it lists the different types of forms and publications for individuals or business.
****NEXT MONTH TAX PAYER GUIDE TO IDENTITY THEFT***********.....Even though tax season is technically finished, identity theft is still an ongoing problem for tax payers. Read our next month's story and see how you can take preventative action to protect your self and what to do if you are a victim of identity theft!!!