Start of 2023 Tax Filing Season
The IRS has announced the commencement of the filing season for US Federal Tax Returns for 2022.
The filing deadline for these returns is April 18th, and this refers to the payment of 2022 tax also.
Those filers living overseas can avail of a 2 month filing extension to June 15th. However, please note that the date for the payment of tax remains at April 18th.
The IRS has designated Monday, January 24th as the commencement date for filing of US Tax Returns for 2021.
They recommend that taxpayers collate all of their correct data/documents before filing.
They have also stated that they will shortly issue a Letter 6475, outlining details of the Third Economic Impact Payment (Recovery Rebate Credit), made to taxpayers.
Due to the effects of the pandemic, and the necessity for staff to work from home, the IRS are facing a backlog of 35 million returns which have yet to be processed.
According to various news organisations including CBS News, the backlog commenced with the processing of 2019 tax returns that were delayed since the start of the pandemic in March 2020. Once staff recommenced work at their offices in 2021, these returns had to be processed first before they could commence processing 2020 tax returns which include the Recovery Rebate Credits.
A figure of 31 Million returns was mentioned for the end of May, and this increased to 35 Million as at the end of June.
US taxpayers will have to be patient until this backlog is cleared.
The IRS have just announced that the filing date for 2020 US Federal Tax Returns has been extended from 15th April 2021 to 17th May 2021.
The date for payment of 2020 tax for individuals has also been extended to 17th May. Therefore, interest and penalties that normally run from 15th April, will not now commence until 17th May.
The IRS has announced that due to the COVID-19 pandemic, the April 15th tax filing and payment deadline has been extended to July 15th 2020.
This is being done automatically by the IRS, and there is no requirement to apply for this extension.
Furthermore, federal tax payments that were due for payment on April 15th will also be deferred to July 15th, without penalties or interest.
This is certainly welcome for filers who were experiencing difficulties in collating information to prepare and file their returns in a timely manner before April 15th.
2018 Filing – New Format
The IRS has sought to simplify the main page of the Form 1040 for 2018.
Therefore, when you go to start the preparation of your 2018 return, you will note that the content of the form is different.
This is because quite a bit of the information is instead included on supporting schedules, and these feed into the main form.
Up to six schedules are available, but not all of them will be applicable to each individual taxpayer.
Care will need to be taken to complete the applicable schedules, and to transfer the data to the cover page Form 1040.
Despite the partial shutdown of US Government services, the IRS have confirmed the tax filing season for 2018 will commence on 28th January 2019.
The last filing date for Forms 1040 will be 15th April 2019.
Overseas Filers will continue to receive an automatic two month extension to file to 15th June 2019.
Please note if a tax liability is anticipated for 2018, the payment date is still 15th April.
Payment after this date will attract interest and late payment penalties.
The Internal Revenue Service reminds taxpayers who may have trouble meeting the April 17 tax filing deadline that Free File provides an easy, online option to get more time. Taxpayers submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, will automatically be granted a six-month filing extension. By using Free File on IRS.gov, the process is free, simple and fast.
This is the seventh in a series of nine IRS news releases called the Tax Time Guide, designed to help taxpayers navigate common tax issues.
The IRS offers the extra time to file, automatically, to all taxpayers requesting it. A filing extension allows taxpayers until Oct. 15 to gather, prepare and file their taxes with the IRS. However, it does not extend the time to pay any tax due.
Applying for an extension requires answering a few questions on Form 4868. Part I of the form asks personal information such as name, address and Social Security number. Part II is tax related and asks about estimated tax liability, payments and residency. By going through Free File on IRS.gov, taxpayers can make the request electronically for free. Besides Free File, taxpayers can request an extension through a paid tax preparer, tax-preparation software or by mailing in a paper Form 4868. Tax forms can be downloaded from IRS.gov/forms.
Other fast, free and easy ways to get an extension include using IRS Direct Pay, the Electronic Federal Tax Payment System or by paying with a credit or debit card. There is no need to file a separate Form 4868 extension request when making an electronic payment and indicating it is for an extension. The IRS will automatically count it as an extension.
Direct Pay is available online and on the IRS2Go app. It’s free, does not require preregistration and gives instant confirmation when taxpayers submit a payment. It also provides the option of scheduling a payment up to 30 days in advance. Taxpayers using a credit or debit card can pay online, by phone or with the IRS2Go app. The IRS does not charge any fees for this service but the card processor does.
The IRS emphasizes that a request for an extension provides extra time to file a tax return, but not extra time to pay any taxes owed. Payments are still due by the original deadline. Taxpayers should file even if they can’t pay the full amount. By filing either a regular return or requesting an extension by the April 17 filing deadline, they will avoid the late-filing penalty, which can be 10 times as costly as the penalty for not paying.
Taxpayers who pay as much as they can by the due date reduce the overall amount subject to penalty and interest charges. The interest rate is currently five percent per year, compounded daily. The late-filing penalty is typically five percent per month and the late-payment penalty is normally 0.5 percent per month.
Other options to pay such as getting a loan or paying by credit card may help resolve a tax debt. Most people can set up an installment agreement with the IRS using the Online Payment Agreement tool on IRS.gov.
Other taxpayers who get more time to file without having to ask for extensions include:
In addition to having payment options, taxpayers who find that they can’t pay what they owe should know that the IRS will work with them. Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov anytime. No appointments needed and no waiting on hold.
The Internal Revenue Service is reminding an estimated 1 million taxpayers that time is running out to file a 2014 tax return and claim refunds totalling more than $1 billion. To claim any refund due, taxpayers must file their 2014 federal tax return by April 17, 2018.
There is no penalty for filing a late return for those receiving refunds. The law provides most taxpayers with a limited window of opportunity for claiming a tax refund. If they do not file a tax return within three years to claim a refund, the money becomes the property of the U.S. Treasury.
The IRS estimates the median potential refund for 2014 is $847. By failing to file a tax return, people stand to lose more than just their refund. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2014, the credit was worth as much as $6,143.
The IRS reminds taxpayers seeking a 2014 tax refund that it may be held if they have not filed tax returns for 2015 and 2016. In addition, any refund will be applied to amounts owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.
Taxpayers who are unable to get Forms W-2, 1098, 1099 or 5498 for 2014, 2015 or 2016 from their employer or other payer should act now to order a wage and income transcript using the Get Transcript Online tool at IRS.gov.
IRS transcripts are often used to validate past income to help with tax preparation. Taxpayers can also use Get Transcript by Mail or call the IRS automated phone transcript service at 800-908-9946 to order a tax return or tax account transcript be sent by mail. Transcripts arrive in five to 10 calendar days at the address the IRS has on file for the requester.
Because software is no longer available for tax year 2014, prior year tax forms (such as 2014 Form 1040, 1040A and 1040EZ) and instructions are available to be printed from the Prior Year Forms and Instructions page on IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676). The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the tax filing deadline, which this year is Tuesday, April 17.
See IRS: Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returnsfor state-by-state estimates of the number of taxpayers who may be due 2014 income tax refunds, the median and total potential refund amounts.
