Time flies when you’re juggling finances, and tax season can sneak up faster than you expect. If you filed for an extension on your 2022 tax return, mark your calendar for October 16, 2023, because that’s the final deadline to avoid late-filing penalties. Procrastinating past this date could cost you dearly, so let’s break down what you need to know to file your return before time runs out.
Ticking Clock: Understanding the October 16 Deadline
Originally due on April 18, 2023, extended 2022 tax returns must be filed by October 16, 2023. Remember, this isn’t an automatic extension – you had to proactively request it to qualify. This year, October 15th falls on a weekend, so the deadline automatically shifts to the next business day, making October 16th the official last day to file without penalty.
Missing Pieces: Dealing with Information Delays
Waiting for that crucial K-1 from a partnership, S-corporation, or trust return? You’re not alone. Thankfully, those forms have their own extended deadline of September 15th (October 2nd for fiduciary returns). However, if you haven’t received them yet, it’s time to reach out and inquire.
Penalty Peril: The Cost of Late Filing
Don’t underestimate the bite of late-filing penalties. For each month (or part of a month) your return is late, you’ll face a 5% penalty of the tax due, up to a maximum of 25%. And remember, if you owe state taxes, a separate late-filing penalty from your state is likely waiting for you too.
Interest Accrues: No Escape from the Clock
Even if you haven’t filed yet, interest continues to accrue on any unpaid taxes at a rate of 0.5% per month. This means the longer you wait, the bigger the financial burden becomes.
Missing Information? We’re Here to Help!
If our office is waiting for missing information to complete your return, we need it well before the October 16th deadline – ideally at least a week prior. Anticipate complications getting us that information? Don’t delay! Give us a call immediately so we can explore options and minimize potential penalties.
Beyond Individual Returns: Other October 16 Deadlines
October 16th isn’t just for individual returns. Remember, it’s also the deadline for:
- FBAR Filings: If you have foreign financial accounts totaling over $10,000 at any point in 2022, you must electronically file FinCEN Form 114 by October 16th.
- SEP-IRAs: Self-employed individuals have until October 16th to set up and contribute to a SEP-IRA for 2022. Traditional and Roth IRA contributions for 2022 ended on April 18th.
- Disaster Relief: Special extended deadlines apply to filing and payments in Presidentially declared disaster areas. Check the IRS website for details.
Procrastination Prohibited: Take Action Now!
Don’t risk penalties and interest charges by waiting until the last minute. Start gathering your tax documents and file your return well before the October 16th deadline. Remember, we’re here to help. Contact us with any questions or concerns you may have. Let’s get your taxes filed accurately and efficiently, avoiding unwanted financial headaches down the road.
