IMPORTANT TAX EXTENSION DEADLINE TO AVOID PENALTIES: April 18th, 2016
April 15th is the typical deadline for filing Individual tax returns (1040) and for partnership tax return (1065) but if the deadline falls on a Saturday, Sunday or a legal holiday, then the due date is the next business Monday.
Luckily for us there is a legal holiday in Washington D.C. on April 15th 2016 called Emancipation day and regardless if you live in D.C. or not, you as a taxpayer will still get a benefit of filling until April 18th, 2016 instead of April 15th.
Now even if you aren’t ready to file, it is important to file an extension IRS Form called 4868 for Individuals and IRS Form 7004 for partnerships. The extensions will give you September 15th, 2016 to file your Partnership returns and October 15th, 2016 to file your individual tax returns.
For individuals, if you have tax due and not ready to file and not ready to make the full payment amount, it is important to at the very minimum file the extension to avoid Late Filing penalty.
Per IRS “If both the 5 percent failure-to-file penalty and the ½ percent failure-to-pay penalties apply in any month, the maximum penalty that you’ll pay for both is 5 percent. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.”
Furthermore, for partnerships, the penalty can be $195 per month if the tax returns are not filed on time.
Therefore, it is important to file the extension forms on time even if you are not ready to file and try to pay much as tax as possible because extension forms gives you time to file your return but not for payments of any taxes owed.
The tax returns are usually considered filed when sent by a mailing service. But in order to show proof that you have sent your return on time, it is recommended to send the tax return through certified mail by the USPS.
The returns can also be filed electronically as well, which is what the Internal Revenue Service prefers for the method of filing.
Therefore, it is important to file your tax return on time to avoid penalties that can be costly.
Modi CPA is a licensed firm in the state of Texas in The Colony, TX and service clients throughout the DFW Metroplex area (Dallas, Addison, Lewisville, Plano, Garland, Forth Worth, Arlington, Richardson, McKinney).
We are a qualified firm to discuss Domestic tax matters such filing due dates and Offshore/Foreign US tax implications regarding Inbound and outbound matters. Do not hesitate to contact our office should you have further questions. Our Phone number is (214)618-0468 and email is Ravi@modicpa.com.