How to Avoid Late Filing and Late Payment Penalties on your Tax Returns?
Remember to file even if you can’t pay. You are filing on time and paying as much as possible to keep your interest and late payment penalties at a minimum. If you can’t pay in full, getting a loan or paying by credit card may be less expensive than owing the IRS. If you do owe the IRS, the sooner you pay your bill, the less you will owe.
Extensions do not extend the payment due date; you are still subject to penalties and interest.
You thought you were good until October 17 because you filed an extension in time, right? Not necessarily. If you owe tax, an extension does not extend your time to pay– it only extends the amount of time you have to file. If you think you owe, make an estimated payment or pay 110% of your 2021 tax liability to fall under the safe harbor rule.
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