April 18th is fast approaching. And even with the extra few days that the weekend and holiday get us, some people will inevitably miss the deadline. If you aren’t going to make it, there are some steps you can
- File an Extension.
This is by far the easiest way to get a little more time. In fact, if you file an extension, you have until October 16, 2017 to finish and file. Not too shabby.
- Stop the Interest and Penalty Pile-Up.
You can mitigate the damage by filing (and paying!) as soon as possible after the deadline passes. And, of course, some lucky people receive no penalties because they are owed a refund. But if you owe the IRS, the interest and penalties add up quickly. The faster you file and pay, the better off you are.
- Pay As Much As You Can.
One of the top reasons for missing the filing deadline is owing the IRS more money than you have. If you need time to save the full payment, pay as much as you can right away. This will lower the interest and penalties that will get tacked on as time goes by.
- Make Monthly Payments.
Again, if you owe more than you have this year, your best bet is to file, pay as much as you can right away, and then set up direct debit monthly payments to the IRS until you’re paid in full. You can set this up online or using Form 9465. This is about damage control and mitigating the interest and penalties that add up quickly for those who simply don’t pay.
- Get an Accountant. And Not Just for Tax Season.
We know that running your own small business can be costly and it can seem like an accountant is just another expense. But an accounting partner like FNG, LLC can help prevent this situation in the future. Not just the late filing situation, but the whole ‘owing more than you have’ situation as well.
Planning ahead is essential to a business’s health. It won’t hurt your blood pressure either. It’s a little late for us to get started on your taxes this year, but if you haven’t filed yet, get your extension in place and give us a call. On April 19th.