Do You Still Need To File Your Taxes?

The tax filing deadline for most individuals was in mid-April. Fortunately, those who were unable to meet that deadline can still file their taxes without accruing major penalties. Technically, those who requested an extension have until October to file, but are not barred from doing so earlier, which has a number of benefits.

The Benefits of Filing Sooner Rather than Later

Taxpayers who qualified for the extension, still have until October 17th to file their 2021 tax returns. Those who have all of their paperwork and information together, however, don’t need to wait until that deadline, but can file now. In fact, taxpayers are encouraged to do so before the summer, when the IRS often experiences a lag in its processing. By filing now, taxpayers will increase their chances of receiving a refund before the fall. Taxpayers who didn’t file an extension and missed the April deadline, on the other hand, should file as soon as possible to avoid further penalties and interest if they owe taxes.

Filing Electronically

Taxpayers who didn’t file their taxes because they didn’t earn enough income to necessitate filing won’t usually be penalized if they owed a refund. They may, however, miss out on receiving a refund if they fail to file at all. To avoid this, taxpayers should consider filing their 2021 tax returns electronically and if they are owed a refund, should choose direct deposit as their method of receipt. Other taxpayers who haven’t filed their 2021 returns, including those who received an extension, can file electronically at any time before the October deadline.

Filing electronically is quicker, more accurate, and more secure. Further, when a taxpayer opts for direct deposit, their refund will go directly into their bank account. Generally, the IRS processes electronically filed returns and issues corresponding refunds in fewer than three weeks.

Payment Options

Filing a tax return and paying any amount owed to the IRS can help taxpayers avoid the accrual of further interest and penalties. Many, however, may be wary of doing so because they are unable to pay their tax debt. Fortunately, there are a lot of options for taxpayers who find themselves in this situation, including:

• Paying taxes through an online account;
• Paying by debit or credit card;
• Applying for a payment plan;
• Seeking an Offer in Compromise to settle the debt for less than is owed; and
• Asking for a temporary collection delay if facing financial hardship.

By filing and entering into an agreement with the IRS as soon as possible, taxpayers who are unable to pay what they owe in full can still avoid significant penalties and fines.

Do You Still Need to File Your 2021 Taxes?

Although the filing deadline for most taxpayers passed in April, there is still time for those who have not yet filed their taxes to do so without incurring hefty fines. For help negotiating a payment plan with the IRS, or to learn more about the benefits of filing before the October deadline, call dedicated Florida unfiled tax lawyer, CPA, and former FBI Special Agent Ronald Cutler, P.A. You can set up a free one-on-one consultation by calling 386-490-9949 today.

Sources:

irs.gov/newsroom/dont-wait-to-file-irs-encourages-taxpayers-with-october-filing-extensions-and-others-who-still-need-to-file

irs.gov/payments