Evan Vitale

Evan Vitale – Upcoming 2017 Tax Dates

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By Evan Vitale

Tax Day – which is probably the “best” word to describe the day in which all United States citizens must file their tax returns – is quickly approaching.

As you prepare (or fret) the impending deadline, here are some important tax dates to remember for this year (2017):

  • Typically, the regular tax deadline is April 15. We ALL know April 15. Right? However, this year, April 15 falls on a Saturday and the following Monday (April 17) is an official Washington D.C. holiday known as “Emancipation Day.” Therefore, the deadline to submit your 2016 tax return – or to file an extension – is Tuesday, April 18, 2017.
  • Remember, if you are submitting your tax return online, it must be completed and submitted to the IRS by that date. If you are mailing a paper return, it must be postmarked by April 17.
  • Anyone can file for an automatic six-month extension with a deadline of October 17, 2017. However, an extension gives you more time to submit your return and NOT more time to pay the tax balance you owe. Many people think they can file and pay at the same extension deadline and this isn’t true. The longer you wait to pay any outstanding balance, the more penalties and late fees you’ll incur.
  • As of this blog post, you should have received all required tax documents from your employer or from other sources of income. This would include Forms W-2, 1099 and documents that involve bank interest and retirement account distributions.

Try your best to prepare and file your tax returns as soon as possible. Waiting until the deadline could cause extra stress and it always seems like there are some unforeseen problems (i.e., missing forms; software updates; Internet connection problems; lack of toner to print forms, etc.).

If you are expecting a tax refund, you definitely want to file early! However, if you owe taxes this year, at least get your forms and returns prepared and ready to go. You could always wait until April 18 in order to sign the necessary documents (and your check) and drop them in the mail.

Good luck!

Watch Those Tax Return Loan Fees!

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By Evan Vitale

Tax season is upon us and you’re probably in the same situation with others in that you’d like to get your taxes filed as quickly as possible and get your hands on your return.

However, what about those different businesses that help you prepare your taxes so they can offer you a “loan” on your return?

Unfortunately, even if you need the money right away, it might not be worth the price.

These are short-term loans – also called “instant refund loans” or “refund anticipation loans” – are popular as millions of Americans use the service year after year.

So, why are they a bad idea?

  • Large fees. Businesses offering tax services and short-term loans on your returns may also be charging you initial loan fees; tax preparation fees and electronic fees for filing your return. These fees might take a bite out of a larger return you were expecting.
  • Outrageous APR. In order to receive the loan on your return, you might have to pay an annual percentage rate of over 200%. Remember, this is just a short-term loan. Would you pay such a high rate for a car or home loan? Of course not!
  • Potential IRS problems. Remember the Internal Revenue Service? If there is any problem with your return, the IRS could throw a wrench into things and hold your refund. Even if that happens, you’re still responsible for paying off your short-term loan and now you’re stuck due to a return problem.

Some people may not have a choice and might be in a tough financial pinch and need the money from “loan on your return” businesses. If so, look for the best deal and the best interest rate. Do your homework, but remember: the best advice is to try to avoid getting a loan on your return altogether.

Evan Vitale – Did You Miss The Tax Deadline?

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By Evan Vitale

Now that we’ve passed the deadline – Monday, April 18, 2016 – for filing your federal, state and local tax returns, what should you do if you didn’t file or if you asked for an extension?

What are you waiting on?

Not filing your tax returns isn’t going to make the problem going away. The problem is still there and you certain don’t want the Internal Revenue Service to file your tax returns for you, nor do you want to get a letter in the mail from the IRS.

Some avoid filing tax returns because they know they are going to owe taxes and don’t have the financial ability to write a check at the same time. That’s OK. A lot of people owe taxes. You should still file your returns and get them in the mail ASAP. This way, you’ll have an exact amount that you owe and you can start working out a payment play with the IRS (yes, they will work with you on a payment plan that fits within your budget).

Filing an extension doesn’t delay the due date on the amount of taxes owed. Many people believe an extension means they don’t have to file tax forms nor do they have to pay until October 15. That is false. Filing for an extension means your forms are due by that date. The amount of tax you owe is still due on Monday, April 18, 2016.

By filing for an extension, you are still responsible for any non-filing penalties that have accrued to that date.

If you need help in getting your tax returns completed – even after the deadline AND even if you are not financially able to pay your taxes – you can visit one of many local tax filing offices that pop up all over the place this time of year or call an accountant to help you.

Don’t delay. Even though you missed the deadline, you are still required to get your returns completed and in the mail.

Evan Vitale – Filing Your Taxes FAQ

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By Evan Vitale

With tax day just around the corner, sometimes a few questions might come to mind if we’re surprised and find out that we owe taxes instead of receiving a refund. Here are some questions and answers to paying taxes and facing some unexpected financial responsibility.

What happens if I can’t pay my taxes this year?

You still want to sign and send in your tax return and pay as much as you can. The Internal Revenue Service (IRS) has payment options available, depending on how much you owe and your current financial situation. Each option has different requirements and some have fees.

What happens if I file late?

If you file your tax return late – with or without payment – the IRS will likely charge you a penalty. In addition, if you owe taxes, the IRS charges daily interest on unpaid tax bills. Therefore, the longer you wait to file or begin a payment plan, the more interest you will owe.

What happens if I don’t file my taxes?

This isn’t a good idea. The IRS will likely send you reminders to file. If ignored, the IRS may then file a substitute return on your behalf. Granted, while this may sound like a good idea in having the IRS file for you, you’ll probably not receive entitled deductions or credits.

If you are a chronic non-filer, you will be subject to additional penalties and, in some cases, criminal prosecution. Delinquent taxpayers who owe more than $25,000 will eventually receive a personal visit from an IRS agent to collect payment.

Remember:

  • Complete and file your federal, state and local (if required) tax returns on time to avoid penalties.
  • Even if you can’t afford to pay your tax obligations, it is better to file without payment than it is to wait until a later date. If you can, make some time of payment with your returns.
  • Never avoid or ignore filing your tax returns on time.