A BRUTAL 25% extra charge will face Americans if they don’t complete crucial tax filing requirements by the strict April 15 deadline, experts have warned.
Taxpayers can, however, make three moves to offset the damage as the annual tax season filing deadline approaches – and even avoid having to pay the hefty IRS penalties at all.
Bennett FinancialsArron Bennett, tax expert and CEO of Bennett Financials, spoke with The U.S. Sun about the best ways to submit a timely tax filing[/caption] Linkedin/stephenaweisbergStephen A. Weisberg, principal attorney and founder at The W Tax Group, spoke with The U.S. Sun about what to do if you miss the April 15 tax filing deadline[/caption] GettyThe U.S. Sun spoke with two tax experts on how to file your taxes quickly and what to do if you don’t file in time for the deadline[/caption]Tax season, which officially began on January 27 when the IRS started accepting returns, is now coming to a close.
Americans have just two weeks left to file their 2024 tax returns by the April 15 deadline.
PENALTY PREVENTION
Although preparation is a key strategy to encourage timely tax filing, things don’t always go to plan.
Roughly 22% of Americans have admitted to waiting until the last minute to file their taxes and around one in five have filed their taxes late.
Some of the top reasons for late filing include financial difficulties, the lack of necessary documents, forgetting the deadline, finding the process too complicated, and preferring to ask for an extension, per a Greenback Expat Tax Services study.
Yet the penalties dished out by the IRS for failing to file by April 15 can reach as high as 25% of your tax debt, making payments even harder for those who fall behind.
If you find yourself in any one of these situations, principal attorney and founder at The W Tax Group, Stephen A. Weisberg, shared three steps Americans should take.
1. PAY ON TIME
Americans should keep in mind that payments are due by the April 15 deadline even if the return itself will not be filed until later in the year, Weisberg told The U.S. Sun.
Taxpayers can avoid unnecessary fees by paying their taxes owed by this deadline. Missing it incurs a failure to pay penalty.
“Even if you can’t file on time, pay what you owe or pay as much as you can,” said Weisberg. “Even if it’s not an exact science.”
The penalty is 0.5% of the unpaid taxes per month and can reach up to 25% of the entire balance owed, the expert noted.
“The more you pay on what you owe, the less the failure to pay penalty,” he said.
In addition to penalties, the IRS will charge interest on any taxes not paid by the April 15 deadline.
The interest rate is typically based on the federal short-term rate plus 3%, and it compounds daily.
Even if you can’t file on time, pay what you owe or pay as much as you can. Even if it’s not an exact science. The failure to pay penalties from the IRS can go up to 25% of the entire balance owed. The more you pay on what you owe, the less the failure to pay penalty.”
Stephen A. WeisbergThe W Tax Group Founder2. File an extension
For those unable to file their 2024 tax returns by the April 15 deadline, Weisberg advised filing an extension.
Americans can submit Form 4868 to request a six-month automatic extension.
The extension must be requested by the April tax filing due date in order for it to be valid.
If granted, the extension gives taxpayers until October 15 to file without facing the failure to file penalty.
However, failure to pay penalties and interest still apply if taxes are not paid by April 15.
3. File as quickly as possible
Taxpayers should aim to file as quickly after the deadline as possible even if they cannot file on time, Weisberg noted.
In addition to the failure to pay penalty, taxpayers are subject to a failure to file penalty if they do not file their tax return by the due date or their extension date.
The failure to file penalty is generally 5% of the unpaid taxes for each month and can go up to 25% of the total balance owed, according to the tax expert.
“The faster you file, the less the penalties,” he emphasized.
If you find yourself in a pinch to file your taxes, remain calm and assess your options to help reduce tax season stress.
Majority of Americans plan out tax refund spending half a YEAR in advance
A new study conducted by Talker Research has found a third of Americans plan out what to spend their tax refund on half of a year in advance.
The new poll of 2,000 U.S. taxpayers found 79% believe they’ll get some sort of refund this year, and many of them have already planned out what to spend it on.
A majority (52%) said their tax refund is an important part of their budgeting plans, and 77% plan to spend their refund on necessities.
Chief among necessities were bills like rent (52%), groceries and essential items (44%) and credit card debt (37%).
Over half (56%) of those spending their refund money on credit card debt are specifically targeting their holiday season purchases.
Meanwhile, 8% are planning to spend their refund on luxuries.
They’re spending their refund on new clothes (37%), entertainment (28%) and new phones (26%).
Commissioned by TaxSlayer and conducted by Talker Research, the study found the average person hopes to receive roughly $1,700 in tax refund money this year.
A fifth (22%) believe they’ll end up with more money this year than last, while 26% believe the opposite. Half (51%) expect to receive about the same amount.
Last year, 12% said they got a larger-than-expected tax refund, while 20% recalled getting less than what they expected.
Many respondents expecting to receive more this year said it was due to withholding more money on their W-2, making more money in the past year and having a newborn.
And those expecting to receive less shared potential causes why: losing their job, owing back taxes, children aging into adulthood and increased tax rates.
Survery by Talker Research.
TIMELY TACTICS
With a little forward thinking, taxpayers can ensure they are able to submit their 2024 tax returns by Tax Day on April 15.
Both proper preparation and suitable tools are the best ways to submit a timely tax filing, according to Arron Bennett, tax expert and CEO of Bennett Financials, a tax planning and strategy company.
Americans must obtain all of the necessary documents in advance in order to file their taxes efficiently, Bennett explained to The U.S. Sun.
This includes W-2s, 1099s, investment statements, and receipts for deductible expenses.
Business owners, along with self-employed individuals, need to maintain year-round organization because tax season will become overwhelming if they do not.”
Arron BennettBennett Financials CEOOnce taxpayers have gathered these documents, the expert suggested using tax software or consulting with a qualified professional to file taxes electronically.
E-filing and choosing direct deposit is the fastest way to get your refund and helps to minimize the potential for errors that could delay your IRS documents, Bennett noted.
“Business owners, along with self-employed individuals, need to maintain year-round organization because tax season will become overwhelming if they do not,” said the tax expert.
“You can save hours of time at filing season by implementing bookkeeping tools or working with a tax strategist to maintain organized income and expense categories.“
When filing your taxes, there are a few other things to keep in mind.
For example, tax season is ripe for scams according to experts – easy tips to follow to make sure you get a fast return.
Plus, taxpayers are at risk of missing out on a permanent $832 payment – act before the April deadline.
2025 Tax Season
Tax season started on January 27 and folks must have theirs completed filed on April 15.
Those who fail to file by that time may face penalties.
However, taxpayers who need more time may file for an extension – this gives them until October 15.
The way to do this is by filling out Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
This can be done by mail, online with an IRS e-filing partner, or through a tax professional.
While there’s no set schedule, the IRS revealed that taxpayers may receive refunds within 21 days of filing.
Just be sure to avoid making mistakes on any forms as that could tack on extra time.
Those filing through mail will likely get their returns within a month or could even face delays as the IRS processes millions.
As of January 31, the average refund amount totaled $1,928, per the IRS.
This is compared to the $1,395 for the same period in 2024.
The average direct deposit refund for 2025 was even higher, the IRS said, at $2,069.
To check the status of your refund, The IRS has an online tool called Where’s My Refund?
This works within 24 hours of e-filing and generally within four weeks of filing a paper return.
Read More Details
Finally We wish PressBee provided you with enough information of ( All Americans who don’t hit vital tax requirement by April 15 risk 25% fine – but three steps can lessen the blow )
Also on site :
- Steph Curry sends 5-word warning to NBA rivals after stunning 52-point game in Warriors’ playoffs charge
- Tilda Swinton Works With Pedro Almodóvar, Luca Guadagnino Set for Exhibition at Amsterdam’s Eye Filmmuseum
- Edgewise Therapeutics Announces Pricing of $200 Million Underwritten Offering of Common Stock