So, whether you should get an extension really comes down to your own situation and preferences. To help you answer that question, here are a few pros and cons of waiting to file your tax return. BATON ROUGE – The Louisiana Department of Revenue will begin accepting 2022 state individual income tax returns on Monday, Jan. 23, 2023.
Eligible taxpayers will also have until May 15, 2023 to make 2022 contributions to their IRAs and health savings accounts. By law, IRS is generally required to pay interest on refunds issued to taxpayers later than 45 days after the filing deadline. IRS paid interest on many taxpayer refunds last year because it extended the tax filing deadline from April 15 to July 15, and because it was having trouble processing returns in a timely manner. In FY 2020 alone, IRS paid about $3 billion in interest to taxpayers whose refunds were delayed, in part due to COVID-19 and the backlog of paper tax returns.
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Taxpayers incertain disaster areasdo not need to submit an extension electronically or on paper. Check to see if you qualify and the due date of your return. "If Irs Still Working On Last Years Tax Returns, May Extend 2021 Tax Deadline you are owed a refund, there's no law that says you have to go get it," he says. "But there's also no requirement that says the IRS needs to seek you out."
The failure-to-pay penalty is 0.5% of the unpaid amount for each month, or part of a month, up to a maximum of 25%. The penalty increases to 1% if the tax remains unpaid 10 days after the IRS issues a notice of intent to levy property. If you file your return by its due date and request an installment agreement, the penalty goes down to 0.25% for any month in which an installment agreement is in effect. Maybe it feels that way because last year the IRS extended the tax filing deadline to July 15 in response to COVID-19. However, the pandemic had broader impacts than just moving the filing deadline.
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If you owe taxes, interest will accrue from the original due date. To avoid penalties and interest, you must pay by June 15, 2022. If you are living or traveling outside of the U.S. on April 18, 2023, file and pay your taxes by June 15, 2023. File and pay on time to avoid penalties and fees and use web pay to make your payment.
However, you only have three years after the subject tax year to claim your tax refund. After the three years, you tax refund will unfortunately expire and you can no longer claim your hard-earned money back from the IRS. For example, after April 15, 2026, you will no longer be able to claim your 2022 IRS tax refund.
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First and second quarter estimated tax payment deadlines are still April 15, 2021 and June 15, 2021. Without a valid extension, an individual income tax return filed after the original due date is delinquent and subject to interest and all applicable penalties provided by law. If Hawaii does conform to any of the federal provisions that reduces the tax amount owed, any overpayment of estimated tax can be claimed on the return when filed. If you must file late, you can get an automatic extension by filing IRS Form 4868.
Electronic filing, when linked with direct deposit, is the fastest way to get a refund. The earned-income tax credit, available to low- and moderate-income workers, is another refund that was expanded https://quick-bookkeeping.net/how-to-make-a-billing-invoice/ because of the pandemic and set to decrease this tax season. A qualifying taxpayer with no children who received about $1,500 in 2021 would now only receive $560, according to IRS figures.