Taxed for Time

12 Oct 2018

Taxes aren’t something you think of come October. After all, you’ve still got a few months left before you need to get your finances in order. However, for some, October 15, 2018 is the date to file their taxes if they requested an extension. That’s right! If you weren’t aware, you can ask for an extension for filing your taxes. Allow White Income Tax to explain how it works.

Don’t Be Rushed

For many, tax season can be taxing (pun intended). While one person’s finances may not be as complicated, another person may be filing for a business or multiple partnerships. They could even be out of country when tax season hits. For these, and other reasons, it becomes necessary to apply for an extension on filing your taxes.

Anyone Can Do It

Just because you don’t have a large business venture or foreign investments doesn’t mean you can’t file for an extension. Many people request extensions to ensure the accuracy of their finances. Additionally, the process is easy and completely free. Most of the time, your requests are granted, and you buy yourself extra time.

You Still Have to Pay

If the only reason you’re filing for an extension on your taxes is to push payment off, it doesn’t work like that. The IRS will still ask for an estimate of what you think is owed and require that to be paid by the original deadline. If there is any balance that goes unpaid, you can end up paying interest on it. For reference, the current IRS interest rate is 5% per year, compounded daily.

Don’t Get Penalized

If you know you can’t pay what taxes are due, don’t apply for an extension and DON’T not file your taxes. The best thing to do in a scenario like this is to file your taxes with the original deadline and contact the IRS directly to work-out a payment plan. If you don’t do this, you risk owing steep fines, having to pay 5% of the unpaid balance per month or partial month, with a max of 25%. This can add up fast.

Find Service You Can Trust

Thankfully, we won’t have to worry about tax season until next April. But, if you already know you may need an extension, or just would like help getting your finances in order before the deadline hits, give White Income Tax a call. We can help file your taxes, work-out payroll, and supply accounting services.

You can contact White Income Tax at 309-326-9866. We are located at 431 N. Western Ave., Peoria, IL 61606.

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