It is Tax Day 2017 and your tax returns are due today. You have to pay anything due to the US government by April 18, 2017. If you don’t want to be marked and hounded later for non-payment of your tax dues, IRS will not think twice before penalizing you for the delay, whether it is intentional or unintentional on your part.
It is last day to file taxes and so you have still got a couple of hours to rush and actually do that. If you don’t seem well prepared you can go and apply for an automatic six-month extension.
In the case you while away the time and neither pay your tax dues or apply for extension, you will face failure-to-file penalty. And believe me it is going to set you back by a substantial amount. This amounts to as much as 5% of your unpaid taxes for every month. So if you delay it for five months you will have to pay with 25 percent premium.
An IRS press release said that people can get extension simply through Free File on IRS.gov.
“Taxpayers can electronically request an extension on Form 4868,” the agency said. “This service is free for everyone, regardless of income. Filing this form gives taxpayers until Oct. 16 to file their tax return. To get the extension, taxpayers must estimate their tax liability on this form and should pay any amount due.”
In the meantime, if you want to pay your tax you can do so through IRS Direct Pay, the Electronic Federal Tax Payment System or pay with a credit or debit card. An extension can also be requested through a paid tax preparer, by using tax-preparation software or by mailing in a paper Form 4868.
The IRS said, “By filing either a regular return or requesting an extension by the April 18 filing deadline, they will avoid the late-filing penalty, which can be 10 times as costly as the penalty for not paying,” the agency said. “Taxpayers who pay as much as they can by the due date reduce the overall amount subject to penalty and interest charges.”