Cranmere Accounting & Tax Services
Did you miss the October 15, 2012 tax deadline for filing your 2011 income tax return?
If so, don’t panic, things happen and the world will continue going round. However don’t procrastinate if you missed the filing deadline as it will be in your best interest to file your tax return as soon as you can.
If you are due a tax refund you are in the good position of not owing any penalties for late filing and have up to three years after the normal filing date to file your Federal income tax return. So for the 2011 return you have until April 15, 2015 to file the return and get the refund. In Arizona it is up to four years to file your Arizona State income tax return to get a refund.
However, why delay filing if you are due a refund. By not filing you are giving the Government an interest free loan but the refund would be more use in your pocket. Even if the Government will keep the refund to pay back taxes, child support or student loans it will still benefit you to file and chip away at those debts.
If you owe tax on your tax return you will be subject to a late filing penalty each month which is 5% of the tax due on your return up to a maximum of 25%. If the return is more than 60 days late the minimum penalty is the lower of $135 or the balance of the tax due. This penalty can get quite large which is why you should try and file as soon as possible.
If you did not pay the tax by April 17, 2012 you will be charged a late payment penalty of 1/2% per month up to a maximum of 25%. You will also be charged interest at the current rate of 3%.
Even if you can’t pay all the tax now it makes sense to file the return as that will stop the 5% late filing penalty.
If you will have difficulty paying all the tax now, the IRS does have various payment arrangements where you can pay the tax over a period of up to 6 years. You can get more details at the IRS Payments page.
If you missed the tax deadline and need help with filing your tax return please call Mark Smith on (480) 363-4808. We serve clients throughout the United States.
Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.
Posted By Mark Smith
Mark Smith, EA is an Enrolled Agent and accountant with over 30 years tax and accounting experience. He is the owner of Cranmere Accounting and Tax Services LLC. He can be contacted on (480) 363-4808 or by email at info@cranmereaccountingandtax.com if you need assistance with any of the above.
