Kalispell, Montana
307 1st Ave E. Suite 22
Kalispell, MT 59901

Filing an Extension? April 3, 2017

Kalispell, Flathead
Filing an Extension?, Kalispell, Montana

An extension to file your returns is NOT an extension to pay your taxes.

This year, Tax Day is April 18. That's the due date for filing your federal income tax return and paying any taxes due. If you fail to file and/or pay by that date, you may be assessed a penalty by the Internal Revenue Service (IRS).

failure to file penalty may apply if you do not file by the due date. You should file your tax return on time - even if you can't afford to pay the tax in full - in order to avoid the penalty. The failure to file penalty is generally 5% of the unpaid taxes for each month that your tax return is late (but not to exceed 25% of your unpaid taxes). The penalty begins to accrue the day after the due date. If your return is more than 60 days late, you are subject to a minimum penalty of the lesser of $205 or 100% of the tax owed.

If you can't file on time, the best way to avoid a failure to file penalty is to request an extension (here's how). An extension extends the time to file, not the time to pay.

failure to pay penalty may apply if you do not pay all of the taxes you owe by the due date. The failure to pay penalty is generally .5% of your unpaid taxes for each month or part of a month that your payment is late. Like the failure to file penalty, the penalty begins to accrue the day after the due date.

If you have extenuating circumstances, you may be able to get a penalty waiver for reasonable cause.

Interest will accrue in addition to the penalty. The interest rate is determined quarterly and is the federal short-term rate plus 3%. Since the imposition of interest is statutory, it's unusual for the IRS will waive interest on late payments, even for reasonable cause.

Still have questions, give us a call!

Other Announcements, Events and Deals from Essential Accounting & Tax Service
3 Benefits of Professional Quickbooks™ Training, Kalispell, Montana
As a small business owner, you may know that Quickbooks™ can streamline your accounting practices, saving considerable time and giving you access to the financial information you nee...read more
3 Small Business Situations Requiring a Business Accounting Professional, Kalispell, Montana
As a business owner, you tackle a variety of tasks every day, but unless you have professional accounting experience, some of these tasks are better left to an expert. Hiring a busin...read more
3 Benefits to Outsourcing Your Payroll Service, Kalispell, Montana
If you own your own business and have employees, paying them accurately and on time is one of your biggest responsibilities. One of the easiest ways to do the job is to outsourc...read more
Waiting for a Tax Refund?, Kalispell, Montana
Are you waiting for a tax refund?  This year, patience is the key as the states and the IRS have announced that, due to efforts to stop the filing of fraudulent returns, all ref...read more