The tax deadline has passed marking the end of the tax season. If you requested an extension using Form 4868, you will have six months to complete your taxes. It is best to file your taxes as early as possible so you will have peace of mind and know that it has been taken care of. If you fail to request an extension, you may be subject to a variety of penalties. The penalty depends on your specific circumstances. Without officially requesting an extension, you should seek the advice of Income Tax preparation NYC as soon as possible to remedy the situation.
Failing to file tax penalty can be as high as 25% each month your taxes have not been received. This is a steep penalty to pay. If you cannot afford to pay such a steep penalty in addition to the tax debt you already owe it would be in your best interest to get your tax forms filed using an Income Tax preparation NYC. They will prepare your taxes and get them submitted as soon as possible. When you submit your taxes you will receive confirmation and therefore no longer be subject to the failing to file penalty.
Once you have filed your taxes you will not be subject to the failing to file penalty but you may be subject to failing to pay penalty if you do not pay your taxes when they are due. Like the failing to file tax penalty, the penalty for failing to pay your taxes is up to 25% each month the debt is not paid. Even if you need to work out a payment arrangement with the Internal Revenue Service, you can do so but do not allow your taxes to continue to accrue additional penalties.
In addition to any penalties you may be assessed, you are also responsible for the interested charged to your account by the Internal Revenue Service. Interest rates on taxes are usually 8%, which may be manageable if you do not have to worry about other penalties like the failing to file and failing to pay. It is best to stay ahead of your taxes, even if you cannot do so, opt for payments throughout the year to reduce your tax obligation. For more details visit Rawcpa.com today.
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