This is the only way to file your taxes correctly, and you can’t know your numbers without updating your finances. Bookkeeping can be time consuming and hard to find the focus for as an entrepreneur. It’s easy to let it slide and forget duties like filing taxes by their due date. If you’re behind on your taxes, you may be subject to penalties.
When are taxes due for 2021?
Tax season usually starts right after the New Year. This is closely linked to people’s W-2s and their ability to deduct things like medical expenses and charitable donations, With any business, you want to keep your taxes paid on time and that means preparing for deadlines in advance.. Tax returns for 2021 are not due until April 18, 2022. That might mean you haven’t been officially late yet! There’s still time to get things cleaned up and filed correctly without penalties.
You have until October 17, 2022 to file your taxes if you are not ready to submit them by the April 18 deadline. The extension will be applied when you file a request with the IRS and they make sure that your request is valid before approving it.
Please note that an extension will only move the due date for taxes paperwork. You still have to pay your taxes by April, even if you filed paperwork extensions.
Penalty for filing taxes late?
Let’s say the worst happens and you miss the federal tax filing deadline. You owe the IRS some money, which is understandably causing a bit of panic. Your first step is to take a deep breath. Late tax filings happen, and it’s not too late to put things right again. While there are some steps that you can take to mitigate the effects of late filing, you should still be prepared for possibly getting a penalty.
There are two possible penalties in this situation: a late filing penalty and a late payment penalty.
These penalties will be based on the size of your debt and how late you filed. For example, if you owe a smaller amount and filed on time, it might cost less than if you owed a lot more and submitted too late.
- The IRS will tack on 5% of the unpaid taxes each month that your taxes remain unpaid.
- If you do not file and pay your payroll taxes on time, the IRS will charge you an additional 0.5% of the unpaid tax amount every month.
If both penalties apply in the same month, the penalties are capped at a 5% penalty for the whole month.
Here is how you can avoid or mitigate tax penalties from IRS:
You can avoid the IRS late-payment & penalty fees by filing your balance due on time. But life has a way of changing up plans!
- File an extension. If you haven’t done so already, file for a tax extension to get more time. While an extension will allow you more time to file, remember that it won’t change the deadline of when any payment is due. If you’ve already missed the April 18 deadline, there are other ways
- File your taxes even if you can’t pay them yet. Our tax filing services can get your form sorted out so you don’t have to worry about getting hit with the larger penalty for missing your deadline. We’ll take care of everything for you so you can get back to focusing on other important things like inventory and profits.
- Get help to file as quickly as possible. The deadline to file your tax form is fast approaching. Here are the penalties that you may face if you miss it: Leaving the part of your income taxes for working with a bookkeeper unpaid may get more expensive.
The tax filing deadline is coming up quickly and you are feeling the pressure. Remember that you have options to make sure you can hit the deadline. Finish cleaning up any bookkeeping for your business so that you can get your taxes filed as fast as possible.
I’m sure you were really excited when you thought you had enough time to get your taxes done, but unfortunately that’s not the case. Thankfully there’s no need to panic. we’re always happy to help!