Slowly but surely, Tax Day (which this year will fall on April 18) is approaching. With that in mind, here are some tips on how to avoid penalties and interests when you file your 2021 tax return.
How to Avoid Penalties and Interests When You File Your Taxes
As everyone knows, the best, most straightforward way to avoid penalties and interests is to file and pay your taxes on time.
With that being said, things aren’t always so clean-cut. What happens when for some reason you can’t file on time? And what if you can’t pay all the taxes you owe? These are real-life situations that anyone might encounter.
Luckily, there are ways to limit or avoid penalties and interests in all these scenarios.
What to Do if You Can’t Pay Your Taxes in Full
If you can’t pay all the taxes you owe right now, you can file on time and pay as much as you can by the due date. This will help you avoid the failure-to-file penalty and will reduce the interest on the unpaid balance.
According to the IRS, some payers may qualify for an online payment plan that allows them to pay off their unpaid balance over time. Contact the experts at Delgado’s Insurance if you are interested in learning more.
What to Do if You Can’t File Your Return On Time
Sometimes you just can’t file your tax return by the due date. What to do in that case?
If you can’ file your taxes on time, you can request an extension. This may reduce, or even eliminate the late-filing penalty.
What you have to keep in mind is that an extension to file is NOT an extension to pay. This means that even if you get an extension, you still have to estimate and pay your taxes by the due date.
Need Help Filing Your Taxes? Contact Delgado’s Insurance
Taxes don’t have to be complicated. At Delgado’s Insurance, we help you maximize your refund while staying compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (email@example.com), or through our social media accounts (Facebook, Twitter).