Hi All,
Today is April 11th. Four days until your Federal and state income taxes are due!
If you are thinking about getting your taxes in late, or are procrastinating, please don’t! The IRS has a number of fees and penalties it assess on laggards. It is much better for your credit to file now, pay them something, and then amend your return later.
In fact, the IRS will charge you three ways if you don’t file.
1) Failure to File Penalty
2) Failure to Pay Penalty
3) Interest
In a nutshell, if you don’t file, the IRS will assess up to 25% of your tax due as a failure to file penalty. For each month you don’t file, you’ll get charged a 5% penalty – up to the 25% maximum. This would be a major hit to the wealth you worked so hard to create – don’t let it happen.
If you file, but don’t pay your tax, you’ll get hit with a .5% fee for each month you don’t pay. No maximum limit.
Regarding interest. If you underpay, the IRS will assess an interest penalty at an annualized rate of 4.5%.
Bottom line: File and pay your taxes, if not you’ll get hit with a healthy set of fees and penalties.
More info is available at the TaxAlamanac.com
Thanks,
James
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