2019 Tax Returns are Due!

So did you submit your tax returns yet? This year, the due date for 2019 taxes is July 15th, 2020. The IRS recommends that you file or submit an extension by the deadline to avoid penalties and interest. So what does this mean really? There are many different situations where a taxpayer could have a situation where they cannot file on time such as "I'm waiting on or can't find a certain tax document" or "I'm waiting on my newborn child's social security number to come in the mail".

Why should I file now and later amend my tax return?

Since there is that uncertainty of when your documents will be readily available for filing, filing on time at least allows you to access your tax refund early. Once you do have that missing document, you can send an amendment to correct your return.

For individuals that normally owe taxes upon tax filing -- you should still file on time so as to minimize penalties and interest that is incurring. Did you know that interest accrues on any unpaid tax from the due date of the return until the date of payment is in full? If you owe tax and don't file on time, there's also a penalty called failure-to-file penalty. The failure-to-file penalty is usually five percent of the tax owed for each month, or part of a month that your return is late, up to a maximum of 25%.

Talk to your tax professional

If you are unsure about your situation, consult with your tax professional as soon as possible to get a clearer picture of your scenario. Early planning and timely filing is key!