Did you crawl on your hands and knees to Uncle Sam on and beg for an extension to submit your income tax return? Don’t be ashamed if you pleaded for your life because roughly 15 million other Americans did the same thing. Our lord and master graciously acquiesced to your request, but the tax man is hungry and he needs feeding, so get ready to file because the deadline is here. You never want to endure the wrath of the tax gods because they will eat your bank account.
Tax Day 2019 is Here
This tax season was unusual. The main reason? The Tax Cuts and Jobs Act (TCJA), legislation that modified the tax code and made it a bit harder for the typical taxpayer to file his or her taxes. But, hey, at least you got to keep a little bit more of your money, right?
If you submitted Form 4868 by April 15, then you allowed yourself an additional six months to file your taxes. This means Oct. 15, and if you miss this deadline, then you will incur stiff penalties for failing to give the Internal Revenue Service (IRS) your personal information, your earnings, and a piece of your soul.
The IRS estimates that about one in ten taxpayers asked for an extension this tax season. Typically, taxpayers request an extension because they need to get their hands on additional tax documents, or they failed to prepare adequately for submission.
Just remember, this is not an extra half-year to pay any taxes owed to the IRS. You will still fork over a huge chunk of your income. Anyone who owes the IRS would have submitted an estimated payment prior to the spring deadline. Unfortunately, if you failed to take this step, or you provided a lower figure, then you might face an underpayment penalty. On the other hand, if you did overpay this past spring, then you will get it back when you give the government your return – interest-free, of course!
In the end, it is essential to file your taxes; otherwise, you will inevitably face a “failure to file” penalty, totaling 5% per month on your unpaid tax bill for up to five months. Once it maxes out at 25%, and you endure an underpayment charge, then you will be slapped with another monthly 5% fine for five months and then 0.5% a month until everything is settled.
That said, the IRS could decide to waive penalties on a case-by-case basis, like if you went through a natural disaster or you suffered a brain hemorrhage after listening to Rep. Alexandria Ocasio-Cortez (D-NY) talk tax policy.
Isn’t life just grand?
The Tax Man Cometh
If you thought April 15 was the most tragic day of the year, then Oct. 15 is that uninvited and unwelcomed sequel. You get the chance to witness the beast on 1111 Constitution Avenue Northwest twice in the same year, and it is neither a joyous occasion or a pretty sight. If you are the 10%, then you get to shed tears, notice some gray in your hair, and feel a pistol being lodged in your back twice in a six-month time span.
Remember! The 15th of October! Gunpowder, theft, and coercion.