Why It's Crucial to File Your Tax Return in May After Receiving an Extension
Wednesday, 22 May 2024, 14:00
Why Filing Your Tax Return in May Matters
If you've received a tax extension, filing your return in May can limit penalties and avoid accruing additional interest. Delaying payment could result in substantial financial consequences, making it beneficial to act promptly.
Understanding the Penalties
- Failure-to-file penalty up to 25% of unpaid tax debt per month
- Late payment penalty of 0.5% per month
- Refrain from accumulating unnecessary debt by filing early
Take control of your finances by proactively managing your tax obligations to prevent costly repercussions.
Options for Late Payment
- Utilize a 0% interest credit card for manageable payment plans
- Consider an IRS installment agreement to spread payments over time
- Ensure timely payment to avoid further financial strain
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.