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The Internal Revenue Service recently opened the door to penalty relief for people who still haven’t filed their tax year 2019 and 2020 returns.
Now the taxman is about to firmly shut that door: People who got an extension to file their tax returns this year must finally submit their return by Oct. 17.
The average payout could work out at $750 when dividing the sum by the amount of eligible taxpayers, payments could vary.
IRS Commissioner Charles Rettig said the agency planned to dole out an estimated $1.6 billion in credits and reimbursements to approximately 1.2 million taxpayers.
The good news: The clock on the penalty only starts ticking in October — and not from one or two years ago.
“For any late filers who wish to beat the deadline, it’s better to file the returns electronically rather than mailing in a hard copy.”
The failure-to-file penalty can be more costly than the waiver on a monthly basis (5% of unpaid tax) compared to the failure-to-pay penalty (0.5% of the unpaid tax).
It’s also a chance for the IRS to stay focused on shrinking an unprocessed tax return backlog that’s at 6.9 million as of mid-September.
For any late filers who wish to beat the Oct. 17 deadline, it’s better to file the returns electronically rather than mailing in a hard copy.
In the aftermath of Hurricane Ian’s destruction, the IRS said Florida residents now have until Feb. 15, 2023 to file their 2021 tax returns if they received an extension.
(Sept. 30, last Friday, marked the last day households can submit income-tax returns for those tax years, and avoid a penalty.)
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