The deadline to file your extended 1040 return is approaching fast. Here are some things to keep in mind for last-minute filers:
- The extension to file is not an extension to pay. If you owe on your tax returns, you may have some penalties and interest if you waited until October to pay.
- Even if you can’t pay your return, you should still file timely. The penalty for late filing is 5 percent of the taxes owed for each month you are late, up to 25% of the total taxes due. So if you don’t want an additional 25% added to your bill, make sure to file timely.
- Penalties and interest are based on the balance due. Believe it or not, IRS likes to keep your money, so there are no penalties for late-filing if you have a refund due. But don’t wait too long, because…
- The statute of limitations on refunds is three years from the original due date of the return. If you file after this has expired, IRS gets to keep your refund.
If you need someone to prepare your Clergy tax return, Clergy Financial Resources can help. Visit our website at https://www.clergytaxnet.com/services/clergy-tax-preparation/ for more details.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101