I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

We are now heading into the “home stretch”, of what is officially the end of the 2021 Tax Season. Some time in mid November, a moratorium on electronic filing of income tax returns will go into effect, and will not open again until the beginning of the 2022 Tax Season (sometime in late January, early February at the latest). That said, for all of the extension filers, it is essentially the last chance to take the 25% “Failure to File” penalty off the table (the penalty is actually 5% per month, up to a total of 25%, but if you filed for extension in April, as is proper then you will have already let at least a portion of five (5) calendar months lapse, and thus be subject to the full amount of the penalty allowed by regulation). You could file for another two (2) month extension, however, the extension is not automatically granted, and you may still be subjected to one of the costliest and quite frankly easiest penalties to avoid by just filing your returns. 

Now, we are by no means recommending that you file inaccurate or knowingly false returns (this would be a violation of the rules and regulations set forth by the Internal Revenue Service (IRS), and subject the guilty taxpayer to penalties, fines and possibly criminal charges. If you don’t have all of your tax documents or items (or you’re unsure of what you might need), you can create an account at Your Online Account | Internal Revenue Service (irs.gov).  This process usually takes about 15 minutes, and once logged-in, seek and print your Account transcripts (unmasked), and then you can use the information found there-in to prepare and file a fairly accurate Federal income tax return.  Unfortunately, if you need state transcripts, you’re going to have to call your state’s tax department and request the state transcripts over the phone (only necessary, if you have W-2 income, because the federal transcripts you just obtained will not have the state withholding information listed).

The last day to file your Individual (also joint) tax returns is midnight on Oct 15, 2022 (without incurring the aforementioned penalty, assuming you owe taxes – if you are in fact receiving a refund you of course have three (3) years from the original due date or two (2) years from the date of the payment of the tax). This is also the last day to file your “C” Corporation Return (Form 1120) without incurring a penalty.

Of course, if you miss the deadline, it is not the end of the world, but you do want to bear in mind that the additional penalties (failure to pay for instance) keep accumulating, and the ability to electronically file your returns is only for a short time after. Therefore, you want to make plans to file your income tax returns, sooner rather than later.

If ever you’re feeling overburdened by your tax situation or you’d rather be doing something else with your time, just remember we’re here to help you with all of your tax preparation, resolution/representation needs.  Now and in the future. Don’t put off addressing your tax situation. Feel free to contact us with any questions you may have in approaching your specific tax scenario.