The deadline for taxpayers who requested an extension to file their tax return is approaching and the Internal Revenue Service (IRS) makes a recommendation: don’t leave it to the last minute.
The next October 17 is the deadline so that those who requested and obtained this extension comply with the submission of their 2021 tax return and avoid an economic penalty.
According to the IRS, at least 19 million taxpayers have pending to file their 2021 tax return and they have less than two weeks to meet their tax obligations.
Just as it did when the April 18 deadline to file the return on time was about to be met, the IRS calls on taxpayers to have everything ready and comply before the extension period.
“Avoid last minute rush to file your returns”, points out the federal tax office in relation to compliance with the deadline.
However, it should also be noted that the IRS announced last week a series of deadline extensions for residents affected by the passage of Hurricane Ian in Florida.
What is the easiest way to make the statement
If you don’t have your return ready yet and you’re racing against time, the IRS has some tips for you. Comply within the deadline and avoid sanctions.
The simplest thing is to file electronically before the deadline and, if you choose to do it this way, the office also highlights that is the fastest way to get a refund.
The IRS has faced a series of delays with millions of declarations that were pending of processes, which has also slowed down the sending of refunds to taxpayers.
Taxpayers who requested an extension got more time to do a more in-depth return on their taxes, but also to take advantage of the tax benefits to which they are entitled.
In this case, taxpayers who have yet to file must take into account that there are deductions and credits that are availableand that they can help you with your declarations.
The IRS warned that if the October 17 deadline is not met, taxpayers could be penalized with penalties of an additional 5% on the total amount owed each month, up to a maximum of 25%.
Extension requests grew in 2022
The challenges that the pandemic posed to taxpayers have left a growing number of extension requestsrecognized by the IRS.
According to their general data, 1 in 10 taxpayers requested an extension to defer their tax filing.
However, for this 2022, the proportion increased to 2 in 10mainly due to the complexities involved in the declarations of the stimulus checks that were delivered as relief due to the COVID-19 pandemic and the Child Tax Credits.
What to take into account for your declaration
The IRS has explained that it is not necessary to pay taxes on stimulus checks received in 2021; however, it must be careful about the amounts that are declared on these aidssince they must match the data that the IRS has.
Reported amounts for support checks, including the Child Tax Credit, must be carefully entered on Schedule 8812 and Form 1040.
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