6/25/2023 0 Comments Copy of 2016 tax extensionSo even if you owe more than you can pay right now, file your return and contact the IRS to set up a payment plan. The failure-to-file penalty can be as much as 25% of taxes due. This penalty is larger than for not paying any balance due,” advised Gil Charney, director at The Tax Institute at H&R Block. “They should still file their return to avoid a penalty for failing to file. Tax experts say you should not avoid filing your taxes is because you don't have the money to pay. Freelancers or other gig-economy workers still waiting on a 1099 could be in the same boat. They’ll need to wait because they don’t have the information necessary to compute their tax obligation. Mark Jaeger, director of tax development at TaxAct, said that some taxpayers are shareholders or partners in a business and are still waiting to receive their Schedule K-1 form. Tax pros say there are many legitimate reasons why you might want to file an extension. (Of course, Greene-Lewis pointed out that if you're using a tax-prep service like TurboTax, the program will do this for you.) Check your state tax department's website: While some states will automatically apply your federal extension, others require you to submit a separate state extension form. Don't forget about state taxes, advised Lisa Greene-Lewis, tax expert for TurboTax.
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