Last year, the tax season calendar was affected by the coronavirus pandemic. The tax changes included in the American Rescue Plan and the closing of the Internal Revenue Service (IRS) offices in the whole country.
For this reason, the tax agency extended the deadline for filing tax returns for the fiscal year 2020 and paying taxes. The deadline to file the declaration was scheduled for April 15; however, the IRS moved it to May 17.
Will the IRS extend the tax deadline to 2022? When will it be known?
This 2022, the tax season has begun, so taxpayers can now file their tax year 2021 return. On January 24, the IRS began accepting and processing income tax returns, establishing a deadline of next April 18.
The IRS plans to follow the fiscal calendar without significant changes this year. However, it is essential to mention that the dates could change again if coronavirus cases increase, causing havoc similar to that seen last year. It is important to note that taxpayers can request an extension to file their returns. In these cases, the deadline would be October 17, 2022.
Although the IRS may modify specific deadlines, we recommend that you file your return early to avoid processing delays and possible tax fines or penalties for not filing your return or not paying taxes by the due date.
Fines and penalties
The penalty for not filing the return on time is 5% of the unpaid taxes for each month. This penalty accumulates one day after the due date until it reaches 25% of the taxes owed. If you don’t pay your taxes on time before the due date, the penalty for non-payment will be 0.5% of the unpaid taxes. The fine is applied monthly.
If both penalties are applied in any month, 5% of the liability will be the total payment. On the other hand, if you file your return 60 days after the due date (April 18) or the extension date (October 17), the minimum penalty will be $435 or 100% of your taxes due if the amount is minor.
You won’t have to pay the penalty for filing late or not paying on time if you show with reasonable cause why you didn’t.
Benefits of filing taxes online
The Internal Revenue Service (IRS) expects the number of people who file their tax returns electronically to rise this year. The electronic tax return offers:
- Faster refunds: Processing electronically filed tax returns is shorter, making the reimbursement more immediate.
- Accuracy – While all errors may not be prevented, e-filing is done by software so that mistakes can be quickly checked and missing information detected. The IRS has reported that electronic tax returns are more accurate than paper returns.
- Early Filing: Taxpayers can file their electronic returns earlier, just like paper returns. (The deadline for filing electronic tax returns remains the same.) The sooner you file your electronic tax return, the faster the IRS can send you your refund. The difference, however, is that with early e-filing, you don’t have to pay the balance of taxes you owe by the tax filing due date.
- Federal and state tax returns: In most states, you can electronically file both federal and state taxes with the IRS at the same time.
- Tax filing receipt: The IRS will send you a confirmation when it has received and accepted your tax return.
How to file your tax return online.
If your tax return was prepared by a professional, you have probably authorized that person to file your return electronically. If you used tax software or an online tax preparation service, follow the instructions they give you. For more information, visit https://www.irs.gov/en/filing.
Do I still have to send something by post?
When you file your tax return electronically, you do not need to submit Forms W-2, W-2G, or 1099-R. However, you do need to show these forms to your tax return preparer if you have one, and you must continue to keep copies of these forms for your records.
Also, most taxpayers can file a tax return entirely electronically. You will need to validate the rescue by providing your adjusted gross income (AGI) for the prior year.