Tax procrastinators take heed — unless you were granted an extension to file your 2021 taxes, the Internal Revenue Service (IRS) is recommending that you get your return in by June 14 (or risk paying a larger penalty).
The agency released a press statement June 9 detailing how the tax penalty works, who can receive a relief payment exemption and what payment options are available.
Taxpayers missing the June 14 cut-off will be charged a failure-to-file penalty, which is the lesser of either $435 or 100% of the unpaid tax. Per the IRS, the calculation used for the penalty is “5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%.”
The penalty for filing a late tax return is accrued until the taxes due are paid — as are any interest or separate late-payment penalties. According to the IRS, taxpayers do not need to calculate their penalties owed, the agency will contact them and bill accordingly.
Some taxpayers may qualify for an extension without requesting one. Members of the military serving in combat zones, individuals living in a federally declared disaster area and those living outside the U.S. may get special filing and payment deadlines due their living/working situation.
Your return needs to be in by June 14, not sent by June 14, so the IRS recommends filing and paying electronically. Payment can be made through the IRS’ Direct Pay service; through your bank account; using a debit card, credit card or digital wallet such as PayPal or Click to Pay; or via the Department of Treasury’s free Electronic Federal Tax Payment System (EFTPS).
Those having a hard time financially might look into an installment payment plan, an offer in compromise (paying less than what is owed) or a temporary delay in collection until a payment can be made.
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