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.
Well the end of the 2021 Tax Season has officially came and went. My 24th tax season in fact. And by now you’ve figured out if you haven’t filed, your return is officially late (whether or not you had filed a timely extension). Now, you can still get relief from the failure to file penalty (which is 5% per month, up to 25%) The failure to file penalty could have still be eluded, you could have filed for another two (2) month extension, however, the extension is not automatically granted. The relief can be obtained if you can come up with a reasonable excuse for missing the deadline, like being out of the country. Other penalties and interest will continue to accumulate until you file your “required” income tax returns. You do want to gather your documents and file as soon as you can, especially if you would prefer to file electronically. We do not recommend filing by mail, unless you absolutely have to do so.
Unfortunately, there have been and are taxpayers that have been forced to mail in their returns, do to a “Glitch” in the IRS system, that will reject random tax returns, and give the reason for doing so as the taxpayer is filing a duplicate tax return. This of course sends the taxpayer into a panic. Don’t get me started with the IRS this tax year, sheesh! Sometime 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).
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).
For those taxpayers that would be 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.
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.