The period to file your taxes recently ended this April 18, after having started in January of this year 2023. Therefore, it is essential that you have finalized the tax filing process before that cycle. Otherwise, you will be exposed to multiple fines and penalties from the IRS in the United States.
In addition to this, it should also be noted that there are other deadlines that you should take into consideration. These are essential for different reasons that can benefit or harm your finances in the short and long term. To prevent any inconvenience, here at The Look we are here to help you. We will tell you everything you need about these periods.
Know the other significant deadlines for tax season
The season to file your taxes has several deadlines of great importance that everyone should know. In addition to the April date mentioned above, October 16, 2023, should also be included. This is the last day you have to file your tax return if you have requested an extension.
However, it is important to note that the extensions granted by the IRS only apply to tax returns. Payment of taxes owed must have been made by April 18. If you have not done so, you will receive multiple fines and penalties. Therefore, you should make sure to cover this debt as soon as possible.
There are certain regions of the United States where the IRS grants deferrals automatically. This way, you can have more time to file your taxes and receive relief from fines or penalties. To do this, you must have a registered address in an area affected by natural disasters, such as the following:
- Alabama
- Arkansas
- California
- Georgia
- Indiana
- Mississippi
- Tennessee
- Nueva York
Ideally, check the official IRS website for additional information about reliefs or extensions. In this way, you can know if you are eligible.
If you fail to meet your tax obligations, the IRS may apply penalties and penalties.
All U.S. citizens and legal residents must meet deadlines so they don't have to face fines and penalties.
It must be considered that the penalties for not filing the return are higher than those for not paying taxes on time. The punishments you can receive from the IRS are as follows:
- If the return is not filed on time, the penalty is 5% of the unpaid taxes each month. These have a maximum limit of 25%.
- If taxes are not paid on time, the penalty is 0.5% of the taxes owed each month.
- If the return is not filed on time and payments are not made, a combined penalty of 5% is applied for each month of delay.
- If the return is filed 60 days after the deadline, a minimum penalty of $450 must be paid. It can also be 100% of taxes owed in amounts less than $450.
- As of April, the interest rate is 7% for underpayments by taxpayers. In the case of large companies, the percentage rises to 9%.
Not sure if you should pay penalties to the IRS? Find out how to find out
In case you do not meet the stipulated payment deadlines, you will receive a notification by mail. This is sent to your registered address and contains all the information regarding the penalties.