Late Tax Deadline Means Three Extra Days to Get Taxes Won
April 04 2017 - 6:00AM
The nearly one in three taxpayers who wait until April to file a
tax return have a few extra days this year to do so and avoid
late-payment and late-filing penalties. The tax filing deadline is
April 18 this year, giving taxpayers three extra days to file a
return or an extension and pay any tax due before those penalties
kick in. Whether taxpayers are looking to come to an office early,
later or even later, H&R Block (NYSE:HRB) will offer extended
hours in select offices nationwide to assist procrastinators with
last-minute tax filing.
A video accompanying this announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/058223fb-4f8d-4bf4-b3fc-7022c7cd9af6
Scheduling quirk extends deadline to April
18
This year, the normal filing deadline of April 15 falls on a
Saturday. Because Emancipation Day is observed in Washington D.C.
on the next business day, the deadline moves to Tuesday, April 18.
Taxpayers must file either a completed return or an extension by
April 18 and pay at least 90 percent of their tax liability to
avoid penalties and interest.
“Even with a few extra days, more procrastinators and other late
filers this year are rushing to get their taxes done. But it’s not
too late to get their taxes won. First, procrastinators should make
sure they don’t overlook any tax benefits or make mistakes that
leave money on the table. And if they don’t have time to do this by
April 18, they need to file an extension to avoid adding extra
penalties and interest to their bill,” said Kathy Pickering,
executive director of The Tax Institute at H&R Block.
Filing an extension helps but doesn’t exempt
procrastinators from paying
The penalty for not filing a tax return is 10 times greater than
the penalty for not paying in full. The best way to avoid this
penalty, which could add up to 25 percent to their tax bill, is to
file a completed tax return or apply for an extension. However, an
extension doesn’t apply to any payments due.
“The extension to file is not an extension to pay for those
taxpayers who owe the IRS money. Taxpayers must pay at least 90
percent of their 2016 tax bill by April 18 or they will face
late-payment penalties and interest,” said Pickering. “Still,
filing an extension will save them the larger failure-to-file
penalty.”
The penalty for not paying in full is 0.5 percent of the unpaid
balance per month with a maximum of 25 percent. The monthly penalty
for not filing a tax return is 5 percent and capped at a maximum of
25 percent. For example, for someone who owes $1,000, the
failure-to-pay penalty starts at just $5 per month, but the penalty
for failing to file a return starts at $50 per month.
Taxpayers who cannot pay have options if they work with
the IRS
If a taxpayer can’t pay their balance due all at once, they can
request a short-term extension to pay, make an installment
agreement or even pay with a credit card. In some instances, the
taxpayer may qualify for an offer-in-compromise. By working with
the IRS, taxpayers may reduce or eliminate their penalties.
“If they’re having trouble paying their tax bill, taxpayers can
save time and money when they are short on both by talking to a tax
professional about their options. A tax professional can help them
determine the best way to pay their tax bill in their unique
situation,” said Pickering.
“It’s in the mail” doesn’t always cut it
Taxpayers filing on paper and mailing their returns need to make
sure they get the return in the mail on time. A mailed return must
be postmarked by the deadline, but if they aren’t using U.S. postal
services, taxpayers need to make sure they use an approved delivery
service. Otherwise they could incur late-payment and late-filing
penalties even if they send the return on April 18.
H&R Block guarantees taxpayers won’t leave money on
the table
The tax refund is the single largest financial transaction many
taxpayers will have in a year. Refunds average almost $3,000 so far
this season. The stakes can be high and mistakes can be costly.
That’s why H&R Block guarantees taxpayers their maximum
refunds. Additionally, H&R Block’s new, exclusive,
consumer-facing experience combines the best of person and
machine. H&R Block tax professionals, augmented with IBM
Watson, this tax season help deliver the best outcome for each
unique tax situation, while helping clients better understand how
different filing options can impact their tax outcome.
For additional help estimating their tax liability, filing an
extension or understanding their payment options, taxpayers may
contact a local H&R Block tax professional. To find the
nearest H&R Block office, visit www.hrblock.com or call
800-HRBLOCK.
About H&R Block H&R Block, Inc.
(NYSE:HRB) is a global consumer tax services provider. Tax return
preparation services are provided by professional tax preparers in
approximately 12,000 company-owned and franchise retail tax offices
worldwide, and through H&R Block tax software products for the
DIY consumer. H&R Block also offers adjacent Tax Plus products
and services. In fiscal 2016, H&R Block had annual revenues of
over $3 billion with 23.2 million tax returns prepared worldwide.
For more information, visit the H&R Block Newsroom.
For Further Information
Gene King, 816-854-4287, mediadesk@hrblock.com
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