COLUMBUS, Ohio (WCMH) – The deadline to file your tax return for 2023 has come and gone.
Some taxpayers may have asked for a little more time to get things done, by requesting an extension from the IRS before April 15. But Chief Tax Information Officer for Jackson Hewitt Tax Services, Mark Steber, said that wasn't the case for everyone.
"Something that's not as highly publicized, is, there's another about 10 million people who do not extend and just fall to filing later and just resign themselves to the fact that they'll just pay the penalties and interest," Steber said.
And when it comes to those penalties, Steber said it could end up costing you big.
"The Failure to File penalty, which is a pretty big penalty," said Steber. "It can be up to 25% of the amount of tax that was due with the tax return, plus interest. And it's not a one time fee. It compounds daily. So, it's in your best interest to take care of it if you miss the deadline. There's also a Failure to Pay penalty, separate from the Failure to File penalty, and it is also a 25% penalty, and it also continues to compound daily for the penalty and the interest. And then there's an Underpayment penalty if you didn't pay your taxes throughout the year."
Even if you requested an extension, Steber said that is merely a request for more time to send in your paperwork, not a request for more time to pay.
"You had to pay in the vast majority," Steber said. "And by that amount, it's about 90% by the due date. If you miss that, then you're at risk."
In summary, Steber said the best thing you can do is file, as soon as possible, to avoid paying even more.
"If the IRS is good at one thing, it's helping taxpayers. If they're good at a second thing, it's getting their money, and they always get their money, all of their money, and you can't hide, despite what TikTok will tell you," said Steber. "They have your name. They have your social. They're very good at collecting cash. Whether it's your savings, your checking, assets that you own, or even retirement monies. And the time doesn't matter. It never goes away if you owe, and they find you, and they start the collection process."
Steber said there may be some leniency in certain situations, but a tax professional can help you to determine the best course of action to take.
