The deadline for those who have been granted an extension to file their tax returns for the 2024 tax season is Tuesday. Andrew Gordon, a tax accountant and CPA from Gordon Law Partners, joins us. brad smith About wealth! We discuss what taxpayers need to know, whether they're filing for expansion in 2024 or preparing for 2025.
“Next Tuesday is the tax deadline, and unfortunately there will be no further extensions, but if you can't file it's usually for one or both of two reasons: you can't file it, or you don't know how much you owe. Either you don't know, or you can't pay.'' In both cases, Gordon explains, it's better to apply sooner rather than later to avoid heavy fines.
“Even if you don’t have tax documents, your bookkeeping isn’t done, or you don’t know how much you should pay for some reason, it still makes sense to submit a quote and revise it later. There will be hefty fines.”
Similarly, “Even if you can't pay, it makes sense to file as soon as possible. In fact, the IRS is willing to work with most taxpayers to develop payment plans and allow them to pay over time. If you're holding off on filing because you're afraid you won't be able to pay, you don't owe any taxes.Just because you have the money now is no reason not to file.You can save a lot of money on penalties. Therefore, you should still submit it.
He said, “The penalty for failure to file is 10 times the penalty for failure to pay. The penalty for failure to file is 5% for each month of failure to file. So if you can file as soon as possible after the deadline. , it's better than waiting forever.”
For those looking to avoid delays during the 2025 tax season, Gordon says: If you know you'll end up with a tax balance at the end of the year, to reduce potential penalties and interest, or simply to help your own cash flow, it makes sense to make quarterly estimated payments based on your tax liability. It might be a good idea. Either last year's debt or this year's debt. ”
“That way, when tax time comes or an extension comes due, you don’t have to worry about not having the money to pay,” he says.
For more expert insights and analysis on the latest market trends, check out more Wealth here.
This post was written by Naomi Buchanan.
