We can’t blame anyone for things slipping by, particularly in this job market, the troubles of keeping up with bills, and other calamities that would make life that much harder. It’s rough out there! Everything from credit to home ownership and so much more – taking it one day at a time seems to be the current manageable method.
So let’s have Hatchitt help out a bit with this
We can take one task off your table with some great information to help guide you. For starters:
You can still file those 2024 taxes. Even late.
And you should. For quite a few reasons.
We, however, expect the questions or the fear of the IRS allegedly coming after you or knocking on your door or what have you. And for a lot of reasons, that’s understandable.
However, take note of this important fact: if you’re entitled to a tax refund, there is no penalty if you’re filing late.
Even if you haven’t requested an extension.
Getting that out of the way is crucial, because chances are you may be entitled to a tax refund (you just haven’t filed your 2024 taxes yet).
But in the scenario where you know you aren’t entitled to a refund?
Information is power. Be in the know. First off, the failure-to-file penalty is:
⦁ 5% of unpaid taxes per month past the tax deadline
⦁ And it won’t ever exceed 25% of your unpaid taxes
⦁ And there will be interest accrued as well
All in all, if you owe taxes, and you were late in filing – your penalty without a requested extension may additionally cost anywhere between $100 (if you’re late by as far out as the end of the year) or as much as a little over $400 (if you’re late by around a couple of decades!).
So keep that in mind
Now with reasonable cause and good faith, however, you could reduce or even remove any tax penalty with the IRS’s approval. You could even legally dispute one.
But we’ll achieve even better: we’ll help you avoid it altogether – if not for this year, but definitely for next year.
Planning your taxes is the best way to avoid being late!
Sign up for the Hatchitt Tax Club, and we’ll keep an eye out on tax season for you! Just click the link below:
