Monday, 21 August, 2017

Today is tax day

Due to April 15 falling on a Saturday and Emancipation Day on the following Monday federal income tax returns must be mailed before midnight Tuesday Deadline Tuesday for tax returns in Alabama
Debra Rodriguez | 18 April, 2017, 17:32

Many taxpayers have no choice but to file for an extension, especially if they're wealthy and have complicated financial situations.

You know those people who line up at the post office and spend hours waiting to get their returns out in time? Even though taxpayers commonly need a deadline extension, the process and documents needed for requesting an extension can be confusing.

More online solutions are available through the IRS search tool, interactive tax assistant and the help and resources section.

If unable to meet Tuesday's deadline, you can request an extension by going to IRS.gov and searching for Form 4868. Automatic extensions give people until October 16, 2017, to file; tax payments are still due April 18, 2017. However, an extension doesn't apply to any payments due. For 2016, the annual national average premium for such a plan was $2,676 per year ($223 per month) for an individual and $13,380 per year ($1,115 per month) for a family with five or more members, according to IRS. Here are details on each of these special tax relief provisions.

After 60 days, the minimum penalty is $205 or 100 percent of the balance due, whichever is smaller. In June 2016, the IRS (without any announcement) consolidated all responsibility for processing Forms 4422 (Application for Certificate Discharging Property Subject to Estate Tax Lien) within the Estate Tax Lien Group of the Advisory department of the IRS. In some instances, the taxpayer may qualify for an offer-in-compromise. If you fear you owe money to the IRS and want more time to pay off your debt, an extension won't grant you that.

Extensions may also be granted under special circumstances such as military service in a combat zone (See IRS Publication 3, "Armed Forces' Tax Guide"), or if you are a U.S. citizen living overseas and meet certain criteria (see IRS Publication 54, "Tax Guide for U.S. Citizens and Resident Aliens Abroad").

Tuesday is Tax Day, when most US residents are required to file their tax returns with the Internal Revenue Service (IRS) and to pay any taxes owed. "To get the extension, taxpayers must estimate their tax liability on this form and should pay any amount due".

Even with the change, IRS says that taxpayers aren't off the hook when it comes to "individual shared responsibility payments", as the tax penalties are described by the agency. That will amount to 5% of your unpaid taxes for every month - or part of a month - that you don't file for up to five months. Doing so on time means you'll have an additional six months to file your federal return.

Experts suggest you file for a refund or extension instead of ditching your return. Whenever you file your return, a tax attorney can make sure you do not make mistakes that lead to you overpaying your taxes.

For taxpayers comfortable using a home computer or mobile device, many questions can be answered quickly by visiting www.tax.ny.gov.

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