IRS reminds extension filers of October 15 deadline

The IRS reminds taxpayers who requested an extra six months to file their 2017 tax return that Monday, October 15, 2018, is the extension deadline for most taxpayers.

For taxpayers who have not yet filed, here are a few tips to keep in mind about the extension deadline and taxes:

• Try IRS Free File or e-file. Taxpayers can still e-file returns for free using IRS Free File. The program is available only on IRS.gov. Filing electronically is the easiest, safest and most accurate way to file taxes.
• Use Direct Deposit. For taxpayers getting a refund, the fastest way to get it is to combine direct deposit and e-file.
• Use IRS online payment options. Taxpayers who owe taxes should consider using IRS Direct Pay. It’s a simple, quick and free way to pay from a checking or savings account. There are other online payment options.
• Don’t overlook tax benefits. Taxpayers should be sure to claim all entitled tax credits and deductions. These may include income and savings credits and education credits.
• Keep a copy of return. Taxpayers should keep copies of tax returns and all supporting documents for at least three years. This will help when adjusting withholding, making estimated tax payments and filing next year’s return.
• File by October 15. File on time to avoid a potential late filing penalty.
• More time for the military. Military members and those serving in a combat zone generally get more time to file. Military members typically have until at least 180 days after leaving a combat zone to both file returns and pay any tax due.

More Information:

• EITC Assistant
• Interactive Tax Assistant
• IRS Tax Map

IRS Offers Tips about Tips

Generally, income received in the form of tips is taxable. Here’s some information to help taxpayers correctly report the income they receive as a tip:

• Use the Interactive Tax Assistant. The ITA tool is a tax-law resource that asks taxpayers a series of questions and provides a response based on the answers. Taxpayers can use Is My Tip Income Taxable?.
• Show All Tips on a Tax Return. Use Form 4137, Social Security and Medicare Tax on Unreported Tip Income, to report the amount of any unreported tip income to include as additional wages. This includes the value of non-cash things someone receives as a tip, such as tickets or passes to an event.
• Report All Types of Tips. Taxpayers must pay tax on all tips received during the year, including those:
  • Directly from customers.
  • Added to credit cards.
  • From a tip-splitting agreement with other employees.
• Report Tips to an Employer. Employees who receive $20 or more in tips in any month must report their tips for that month to their employer by the 10th day of the next month, including cash, check and credit card tips received. The employer must withhold federal income, Social Security and Medicare taxes on the reported tips.
• Keep a Daily Log of Tips. Use Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record tips. This will help report the correct amount of tips on a tax return.

Missed the tax-filing deadline? IRS issues tips on what to do

While the federal income tax-filing deadline has passed for most people, there are some taxpayers still facing tax-related issues. This includes people who still haven’t filed, people who haven’t paid their taxes or those who are waiting for their tax refund.

The IRS offers these tips for handling some typical after-tax-day issues:

Didn’t file by April 18?

There is no penalty for filing a late return after the tax deadline if a refund is due. Penalties and interest only accrue on unfiled returns if taxes are not paid by April 18. The IRS provided taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax deadline. Anyone who did not file and owes tax should file a return as soon as they can and pay as much as possible to reduce penalties and interest. For those who qualify, IRS Free File is still available on IRS.gov through Oct. 15 to prepare and file returns electronically.

Filing soon is especially important because the late-filing penalty on unpaid taxes adds up quickly. Ordinarily, this penalty, also known as the failure-to-file penalty, is usually 5 percent for each month or part of a month that a return is late.

But if a return is filed more than 60 days after the April due date, the minimum penalty is either $210 or 100 percent of the unpaid tax, whichever is less. This means that if the tax due is $210 or less, the penalty is equal to the tax amount due. If the tax due is more than $210, the penalty is at least $210.

In some instances, a taxpayer filing after the deadline may qualify for penalty relief. If there is a good reason for filing late, be sure to attach an explanation to the return.

Alternatively, taxpayers who have a history of filing and paying on time often qualify for penalty relief. A taxpayer will usually qualify for this relief if they haven’t been assessed penalties for the past three years and meet other requirements. For more information, see the first-time penalty abatement page on IRS.gov.

“Where’s My Refund?”

The “Where’s My Refund?” tool is available on IRS.gov, IRS2Go and by phone at 800-829-1954. To use this tool, taxpayers need the primary Social Security number on the return, the filing status (Single, Married Filing Jointly, etc.) and the expected refund amount. The tool updates once daily, usually overnight, so checking more frequently will not yield different results.

Changing withholding?

Because of the far-reaching tax changes taking effect this year, the IRS urges all employees, including those with other sources of income, to perform a paycheck checkup now. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to do that is to use the newly-revised Withholding Calculator, available on IRS.gov.

Owe taxes or need to make a payment?

Taxpayers who owe taxes can view their balance, pay with IRS Direct Pay, by debit or credit card or apply online for a payment plan, including an installment agreement. Before accessing their tax account online, users must authenticate their identity through the Secure Access process. Several other electronic payment options are available on IRS.gov/payments. They are secure and easy to use. Taxpayers paying electronically receive immediate confirmation when they submit their payment. Also, with Direct Pay and EFTPS, taxpayers can opt in to receive email notifications about their payments.

Need to fix an error on a return?

After filing their return, taxpayers may determine that they made an error or omitted something from their return. Usually an amended return is not necessary if a taxpayer makes a math error or neglects to attach a required form or schedule. Normally the IRS will correct the math error and notify the taxpayer by mail. Similarly, the agency will send a letter requesting any missing forms or schedules. Taxpayers can use the Interactive Tax Assistant — Should I File an Amended Return? — to help determine if they should file an amended return to correct an error or make other changes to their return.

Form 1040X, Amended U.S. Individual Income Tax Return, must be filed by paper and is available on IRS.gov/forms at any time. Those expecting a refund from their original return, should not file an amended return before the original return has been processed. File an amended tax return to change the filing status or to correct income, deductions or credits shown on the originally-filed tax return. Use “Where’s My Amended Return?” tool to track the status of an amended return. Normally, status updates are available starting three weeks after the amended return is filed. Allow up to 16 weeks for processing.

Need help responding to an IRS notice or letter?

An IRS notice or letter will explain the reason for the contact and give instructions on how to handle the issue. Most questions can be answered by visiting “Understanding Your Notice or IRS Letter” on IRS.gov. Taxpayers can call the phone number provided in the notice if they still have questions. If the issue can’t be resolved with the IRS through normal channels, contact the local Taxpayer Advocate Service office or call 877-777-4778.

Taxpayer Bill of Rights

Taxpayers have fundamental rights under the law. The Taxpayer Bill of Rights presents these rights in 10 categories. These rights protect taxpayers when they interact with the IRS. Publication 1, Your Rights as a Taxpayer, highlights these rights and the agency’s obligations to protect them.

Watch out for scams

The IRS will never make an initial, unsolicited contact via email, text or social media on filing, payment or refund issues. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. Any email that appears to be from the IRS about a refund or tax problem is probably an attempt by scammers to steal personal or financial information. Forward the e-mail to phishing@irs.gov.

Tax deadline just days away; nearly 40 million to file by April 17

As the April 17 tax filing deadline approaches, the Internal Revenue Service is reminding the nearly 40 million taxpayers who have yet to file their tax returns that there are a variety of options to help them in the final days of the tax filing season.

IRS tax help is available 24 hours a day, seven days a week on IRS.gov. Whether filing a tax return, requesting an extension or making a payment, the IRS website can help last-minute filers on just about everything related to filing taxes.

Information about free e-file options, such as FreeFile, how to request an automatic six-month filing extension or fast and easy ways to pay any tax due using IRS Direct Pay are available online at IRS.gov.

The busiest part of tax season begins this week, with millions of people planning to file. Through April 6, the IRS has processed more than 101 million tax returns and issued more than 79.1 million tax refunds totaling $226.6 billion. The average refund to date is $2,864.

Additional filing season numbers:

• The IRS expects to receive about 14.9 million individual income tax returns for the week ending April 13, with about 13.1 million filed electronically.
• On top of those 14.9 million tax returns, the IRS expects to receive another 17 million tax returns the following week.
• Requests for extension are anticipated to exceed 11.6 million by next week, with the vast majority of those Forms 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, being filed electronically. Overall, this year, the IRS expects to receive more than 14 million extension requests from taxpayers.

Tax preparation help

IRS offers four electronic filing options for individual taxpayers.

• IRS Free File and Fillable Forms: Taxpayers with income of $66,000 or less, will find one or more free tax preparation software options available only through Free File on IRS.gov. Taxpayers with incomes above $66,000 comfortable doing their own taxes can use Free File Fillable Forms.
• Free Tax Return Preparation Sites: The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs offer free face-to-face tax help and e-file for taxpayers who qualify.
• Commercial Software: A multitude of tax preparation software to prepare and file taxes is available for purchase online and through retail outlets.
• Authorized E-File Providers: An e-file provider is an IRS approved tax professional that is qualified to prepare, process, and transmit electronic tax returns.

In addition, IRS.gov has the instructions and forms (1040, 1040A or 1040EZ) to download, print, sign and mail by the April 17 deadline. Taxpayers can also use the Interactive Tax Assistant tool to answer many tax questions they may encounter.

Get an extension

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 of time to file is easy – and free. Individual tax filers can e-file their extension form for free using Free File. They can also get an extension by paying all or part of their estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card. This way taxpayers won’t have to file a separate extension form and they will receive a confirmation number for their records.

Taxpayers can also request an extension through a paid tax preparer, tax-preparation software, by mailing a paper Form 4868. If mailing a Form 4868, the form must be mailed to the IRS with a postmark on or before April 17.

Make a payment

When paying taxes this year keep in mind:

• Electronic payment options are the quickest and easiest way to make a tax payment.
• IRS Direct Pay is a free, easy way to pay online directly from a checking or savings account.
• Taxpayers can choose to pay with a credit or debit card although the company that processes the payment will charge a processing fee.
• The IRS2Go app provides mobile-friendly payment options directly on a smart phone.
• Taxpayers can pay using their tax software when they e-file. If using a tax preparer, ask the preparer to make the tax payment electronically.
• Taxpayers may also enroll in the Electronic Federal Tax Payment System and have a choice of using the internet or phone by using the EFTPS Voice Response System.
• Never send cash by mail. Taxpayers can make a cash payment without the need of a bank account or credit card at more than 7,000 7-Eleven stores nationwide IRS.gov/paywithcash.
• Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, access their tax records online, review the past 18 months of payment history, and view key tax return information for the most recent tax return as originally filed.

More Tax Time Tips from the IRS

The tax filing deadline is Tuesday, April 17 this year. This is because April 15 falls on a weekend and the following Monday is a holiday in Washington D.C. Even with an extra two days, the IRS urges taxpayers to avoid waiting until the last minute to file their taxes. This is the second tip with things to remember at tax time – taxpayers can check out yesterday’s tip.

For those who have yet to file, the IRS has these additional tips to consider:

•Explore Filing Options. Taxpayers have many filing options, many of them free. Seventy percent of the nation’s taxpayers are eligible for IRS Free File and free tax preparation help from a Volunteer Income Tax Assistance or Tax Counseling for the Elderly site. Other options include self-preparation or a professional tax preparer.

•Choose Direct Deposit. The fastest and safest way to receive a refund is to file electronically and choose direct deposit. The IRS issues most refunds in fewer than 21 days.

•Visit IRS.gov. IRS.gov is an excellent resource. Taxpayers can click on the File link for access to filing tips, answers to frequently asked questions and IRS forms and publications. The IRS Services Guide outlines the many ways to get help on IRS.gov.

•Check out Publication 17. Publication 17, Your Federal Income Tax, is a complete tax resource.

•Avoid Errors. Taxpayers should take extra time to review their return for accuracy. Mistakes may delay refunds. IRS e-file is the most accurate way to file, as it eliminates many common errors. Paper return filers should check all names and Social Security numbers, and remember to sign their tax return.

Taxpayers should keep a copy of their tax return. Those using a software product for the first time may need their adjusted gross income amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.