Next Tuesday, April 18, is Tax Day. If you have not yet given us your information, please do so as soon as possible. Although we cannot guarantee anything that has come in after March 8 will be filed without an extension, we urge our clients to file or extend by the deadline in order to avoid penalties associated with late filing.
The April 18 deadline includes:
- Deadline to file for individuals. The tax deadline for individuals typically falls on April 15 each year, but it gets bumped to the 18th because it falls on a weekend this year.
- Deadline to file Form 4868 and request an extension. The Tax Day deadline is also the last day to file Form 4868 requesting an extension to file your individual income tax return. If you won’t be ready to file your tax return by Tax Day, make sure you instead complete an extension request, granting you the ability to delay filing a completed return until October 16, 2023. But remember, even if you choose to file an extension, you are still required to pay any taxes you may owe by the April deadline.
- Deadline to make IRA and HSA contributions for 2022 tax year. For individual income tax return filers, this also marks the final day to make contributions to your IRA or HSA for the 2022 tax year. After this date, you generally can’t make contributions for the previous tax year.
- Deadline to file or extend Fiduciary Income Tax Returns and Gift Tax Returns. The filing deadline for Form 1041 and Form 709 is April 18. If you won’t be ready to file your tax return by that date, you can extend to delay filing a completed return until October 16, 2023.
- First quarter 2023 estimated tax payment due. Making estimated tax payments means that you need to estimate how much income you’re likely to make for the year and determine how much you will owe to the IRS for income taxes. If you overestimated how much tax liability you’d owe for a year and are due a refund, you can choose to receive that money now or apply the overage to the following year’s quarterly tax payments.
- Deadline to file or extend taxes for C Corporations are due. Businesses organized as C Corporations need to file form 1120 by April 18, 2023, if they are a calendar year business. See IRS guidelines or contact your tax advisor for details.
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Penalties for late filing can be steep, and interest rates are climbing ever higher. Currently, the standard penalty for failing to file your annual tax return on time is 5% of the amount due for each month your return is late. If you pay your taxes late, the monthly penalty is 0.5% of the unpaid amount, up to 25% of what you owe, plus interest on the unpaid taxes.
In addition to avoiding penalties, filing your taxes on time ensures that you receive any refunds you may be entitled to in a timely manner. Late filings can delay the refund process, which can cause unnecessary inconvenience.
If you require assistance with filing your taxes or have any questions, please do not hesitate to contact us.