If for some reason you are unable to file your personal tax return by this year’s deadline of April 18, 2017, JBL Accounting and Tax Professionals wants to remind you that you have to option to file a tax return extension. By filing an extension, you will gain an automatic six (6) months to gather, prepare and file your federal income tax return with the IRS. Instead of an April 18, 2017 date to file your federal income tax return, if you file an extension, you will have until October 16, 2017 to file your tax return.
There are a few things you will need to file an extension. You will need to estimate your tax liability and pay any about that you predict you may owe when you file your extension. The simplest way to do this is to utilize a tax accountant who will make sure all of your information is filed properly and you are estimating your potential tax liability accurately.
Individuals who pay as much as they can by the April 18, 2017 extension due date significantly reduce the overall amount they may be subject to with penalties and interest charges. The late filing penalty is generally five percent (5%) per month and the late payment penalty is normally 0.5% per month. It is better to file a federal tax return extension and pay the estimated tax liability up front, then deal with the penalties and interest charges you would be fast with by filing late without an extension.