Tax deadlines for the 2021 tax year are coming up. January 18th 2022— so later this week — is the deadline for fourth quarter estimated tax payments. January 31st 2022 is the deadline for W-2 and 1099 forms to be filed with the IRS. And finally, April 18th 2022 is the deadline for most individuals to file their federal income tax returns.
There are a few exceptions to this last date: those who will file for an extension (which must be done by April 17th), those who live in Maine or Massachusetts, and those who are required to file a Form 1040NR.
In this article, we’ll discuss tax deadlines and what they mean for individuals and businesses. We’ll also provide some tips for staying organized and on top of your taxes this year.
Let’s get started!
Late filing penalties after the tax deadline
Late filing penalties refer to the fees that are assessed when an individual files their taxes after the deadline. The penalty for filing taxes late is typically 0.5% of the total amount owed for each month, or part of a month, that the return is late. This can add up quickly, so it’s important to file your taxes on time — even if you’re not 100% ready yet.
There are a few exceptions to the late filing penalty. If you can show that you had a good reason for not filing on time, or that you filed as soon as possible once you realized your mistake, the IRS may waive the penalty. You can also get a reduced penalty if you file your taxes late but pay the full amount that you owe. Either way, it’s important to contact the IRS as soon as possible if you think you may not be able to file on time.
What happens if I don’t or can’t file by the tax deadline?
If you don’t file your taxes or can’t pay what you owe, the IRS may assess penalties and interest on the amount that you owe. In some cases, they may also take legal action to collect the money that you owe. Such fees and penalties can add up quickly, so it’s important to take action as soon as possible if you’re unable to file or pay.
The best thing to do is contact the IRS and explain your situation. They may be able to work with you to come up with a payment plan or other arrangement. It’s important to remember that the sooner you reach out, the more likely it is that the IRS will be able to help, and the fewer fees and penalties you’ll end up paying.
Additionally, make sure that you generate your W-2s on time. Many people procrastinate tax season because they think it’s difficult, but plenty of fast, effective W-2 generators exist. These tools let you create financial documents quickly and efficiently, and can save you thousands of dollars in the long run.
A typewriter with the words “tax return”
Are tax penalties different for businesses and individuals?
Tax penalties are generally the same for businesses and individuals. However, there are some exceptions. For example, businesses may be subject to different penalty rates for late or inaccurate filings.
The most common penalty for individuals is the failure-to-file penalty. This penalty applies when an individual fails to file a tax return by the deadline. The penalty is usually 0.5% of the amount of tax owed for each month, up to a maximum of 25%.
Business penalties can include the failure-to-file penalty, the failure-to-pay penalty, and the accuracy-related penalty. The failure-to-file penalty is the same as for individuals, while the failure-to-pay penalty is generally 0.5% of the amount of tax owed for each month. Accuracy-related penalties can be significant, and may include a fine of up to 20% of the amount of tax that was underreported.
How to File to Avoid Tax Deadlines
The first step in filing your taxes is to gather all of the relevant documents. This will include W-2 and 1099 forms, as well as any other documentation related to income or deductions. If you have a complex tax situation, you may also need to gather documentation related to investments or self-employment income.
Once you have all of your documents in hand, it’s time to start filing! There are a few different ways to do this:
– You can file electronically using tax software. This is the most common method, and it’s relatively easy to do.
– You can file by mail. This is a bit more time-consuming, but it can be cheaper if you have a simple tax situation.
– You can have a tax professional file your taxes for you. This is the most expensive option, but it can be worth it if you have a complex tax situation.
The most important thing is to complete the forms accurately and completely. This can be tricky, so it’s always a good idea to consult with a tax professional if you’re not sure about something.
Once your return is filed, it’s time to wait for the IRS to process it. This can take a few weeks, so don’t be alarmed if you don’t receive a refund right away.
Best of luck with your 2022 taxes! Use our tips to avoid tax deadlines & tax penalties.
