What many people don't know is that you can file an extension.
Residents who plan to mail their IRS tax returns are encouraged to complete their required paperwork and mail it at the post office prior to 4:30 p.m. Tuesday, in order to ensure it has an April 17 postmark. If your income is above that, multiply what you paid past year by 1.1 (to get to 110%). The penalty for not filing is 5 percent per month up to a maximum penalty of 25 percent of the balance due.
"It's important to note that the failure-to-file penalty is generally more than the failure-to-pay penalty", said Sanford. Even a messy shoe box full of receipts can lead a tax preparer to find some hidden refund opportunities, so it's advantageous to consider itemizing if you have a home, kids, or a newly complicated tax situation. If you owe money to the taxman, you still have to make a well-educated estimate, fill out a form requesting an extension, and send the estimated amount you owe.
As the founder of McLaughlin Legal, San Diego tax attorney Kevan P. McLaughlin focuses his practice on all aspects of Federal and California tax law, with a particular emphasis on representing taxpayers in civil and criminal tax litigation and controversy cases.
If you're like roughly three-quarters of USA tax filers, you'll get a refund when you file your 2017 federal income tax return this year. For the 2015 tax filing year, the IRS indicated that only 802 people had included cryptocurrency gains or losses in their tax filings.
Believe it or not, the IRS maintains a list of individual tax preparers that the agency believes do not accurately file an adequate number of returns.
For more information, please see the IRS press release linked here. She said some people miss out when their tax status changes because of a life event like a new house or a baby, and in the rush to finish their taxes, they leave a big potential deduction associated with their changed tax status on the table. That will allow you to pay your tax debt over six years.
You can submit the form electronically through the IRS website before midnight on April 17. It remains unknown if crypto investors took their earnings from the rise of digital assets in 2017 to pay this year's taxes, but the market is on an upward climb now.
You can still take steps to boost your refund.