five Tax Tips You Should Know Before the Filing Deadline

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Source:   —  April 16, 2016, at 1:01 AM

Here are five frequently asked questions that can assistance you before the deadline, which this year is on Monday, April eighteen. one. What if I can't create the deadline? If you're not prepared to file by April eighteen (or April nineteen for taxpayers in ME or Massachusetts), you can fill out Form four thousand eight hundred sixty-eight at IRS.

five Tax Tips You Should Know Before the Filing Deadline

If you haven't filed your taxes yet, you're not alone: twenty to twenty-five % of all Americans wait until the latest two weeks to file their taxes, according to the IRS.

Here are five frequently asked questions that can assistance you before the deadline, which this year is on Monday, April eighteen.

one. What if I can't create the deadline?

If you're not prepared to file by April eighteen (or April nineteen for taxpayers in ME or Massachusetts), you can fill out Form four thousand eight hundred sixty-eight at IRS. gov, which provides an automatic six-month extension. But you still necessity to pay as much of what you think you owe in taxes, to reduce penalties and interest charges.

If you file a return but don't pay all the tax that'south due, you'll generally have to pay a late payment penalty. That'south one-half of one % for each month, or portion of a month, up to a maximum of twenty-five % of the unpaid amount, according to the IRS.

two. Where'south my refund?

It can get about twenty-one days or less to obtain your refund, according to the IRS. You can start checking the status of your return at IRS. gov.

three. How much should I be getting back?

The IRS says that most people obtain something back. The average refund is about $three.000.

four. What happens if I don't file?

It depends. If you're owed money, you could lose your refund if you don't file your taxes within three years. If you owe the government, then you face interest charges, penalties or even criminal prosecution if you're a chronic non-filer.

Interest accrues on any unpaid tax from the due date of the return until the date of payment in full, according to the IRS, which determines the interest rate quarterly. It'south the federal short-term rate plus 3 % and the interest compounds daily.

If you owe tax and don't file on time, the penalty is generally five % of the tax owed for each month, or portion of a mo that your return is late, up to a maximum of twenty-five percent, according to the IRS.

five. Will I obtain audited?

IRS audits are at their lowest levels in more than a decade and that trend may continue this year, IRS Commissioner John Koskinen said in a speech to the National Press Club latest month. The vast majority of those who obtain audited are making a million dollars or more each year.

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