As summer winds down and we approach the fall season, it’s important for those who filed for tax extensions back in April to start preparing to meet the upcoming deadlines. Filing for an extension gives you extra time to submit your tax return, but it does not extend the time to pay any taxes owed. 

Here’s what you need to know to ensure you meet all requirements and avoid any penalties.

Important Deadlines

The extended deadlines for filing your tax return and related forms are fast approaching. Here are the key dates to keep in mind:

• September 16, 2024: This is the extended deadline for filing your 2023 partnership or S corporation tax return.
• October 15, 2024: This is the final deadline to submit your extended individual tax return for the 2023 tax year.

Forms You Need to File

To complete your tax return, you’ll need to gather and file several important forms. Here are some of the most common ones:

• Form 1040: This is the main tax return form for individuals. Ensure that you fill out this form completely and accurately.
• Schedule A: If you are itemizing deductions, you will need to complete Schedule A to detail your deductions.
• Schedule C: If you are self-employed or own a small business, use Schedule C to report your business income and expenses.
• Form 1099: Gather any 1099 forms you received for interest, dividends, or independent contractor income.
• W-2 Forms: Collect your W-2 forms from all employers to report your wages and taxes withheld.

Make sure to review all forms and instructions carefully to avoid errors that could delay your return or trigger an audit.

What Happens If You Don’t File

Failing to file your tax return by the extended deadline can result in significant penalties and interest charges. Here’s what you can expect if you miss the deadlines:

• Late Filing Penalty: The IRS imposes a penalty of 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%.
• Late Payment Penalty: If you didn’t pay your taxes owed by the original April deadline, you’re also subject to a late payment penalty, which is typically 0.5% of the unpaid taxes for each month the payment is late.
• Interest Charges: The IRS charges interest on any unpaid taxes from the original due date (April 15) until the date you pay in full. The interest rate is determined quarterly and is the federal short-term rate plus 3%.

Remember: Payment Was Due in April

It’s crucial to remember that while the extension gave you more time to file your return, any taxes owed were still due by April 15, 2024. If you haven’t yet paid your tax bill, you should do so as soon as possible to minimize penalties and interest. Here are some tips to help manage your payment:

• Check Your Payment Status: If you’re unsure about your payment status, you can check it through the IRS’s online tools.
• Set Up a Payment Plan: If you can’t pay the full amount, the IRS offers payment plans that allow you to pay your tax debt over time.
• Consider Paying Electronically: Paying online through the IRS’s Direct Pay system or using a credit or debit card can ensure your payment is processed quickly and securely.

Filing your tax return on time and paying any taxes owed is essential to avoid additional penalties and interest charges. As the September 16 and October 15 deadlines approach, make sure to gather all necessary forms, review your information carefully, and submit your return on time. 

If you have any questions or need assistance, our team at Diamond & Associates is here to help.

At Diamond & Associates, we’re committed to providing the guidance and support you need to navigate the tax filing process smoothly. Contact us today to schedule a consultation or to get answers to any questions you may have about your tax return. We’re here to ensure you meet your obligations and minimize any potential issues with the IRS.