From Pinnacle Wealth Planning Services — 

Federal income tax returns are due for most individuals on Monday, April 18, 2022 (Tuesday, April 19, 2022, if you live in Maine or Massachusetts).

Need more time?

If you’re not able to file your federal income tax return by the April due date, you can file for an extension by the April due date using IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Filing this extension gives you an additional six months (until October 17, 2022) to file your federal income tax return. You can also file for an automatic six-month extension electronically (details on how to do so can be found in the Form 4868 instructions). There may be penalties for failing to file or for filing late.

Note: Special rules apply if you’re living outside the country, or serving in the military outside the country, on the regular due date of your federal income tax return.

Pay what you owe

One of the biggest mistakes you can make is not filing your return because you owe money. If the bottom line on your return shows that you owe tax, file and pay the amount due in full by the due date if at all possible. If you absolutely cannot pay what you owe, file the return and pay as much as you can afford. You’ll owe interest and possibly penalties on the unpaid tax, but you will limit the penalties assessed by filing your return on time, and you may be able to work with the IRS to pay the unpaid balance (options available may include the ability to enter into an installment agreement).

It’s important to understand that filing for an automatic extension to file your return does not provide any additional time to pay your tax. When you file for an extension, you have to estimate the amount of tax you will owe; you should pay this amount by the April filing due date. If you don’t, you will owe interest, and you may owe penalties as well. If the IRS believes that your estimate of taxes was not reasonable, it may void your extension.

Tax refunds

The IRS encourages taxpayers seeking tax refunds to file their tax returns as soon as possible. The IRS anticipates most tax refunds being issued within 21 days of the IRS receiving a tax return if the return is filed electronically, the tax refund is delivered through direct deposit, and there are no issues with the tax return. To avoid delays in processing, the IRS encourages people to avoid paper tax returns whenever possible.

IRA contributions

Contributions to an individual retirement account (IRA) for 2021 can be made up to the April due date (without regard to extensions) for filing the 2021 federal income tax return.

Contact the Pinnacle CPA Advisory Group for tax help

Tax Day is almost here! If you need help with your business or individual taxes, please contact the experts at the Pinnacle CPA Advisory Group as soon as possible. To set up an appointment to review any tax or accounting issue, call us at (614) 942-1990, reach us by email at info@cpaagi.com, or just fill out our Contact form at cpaagi.com/contact.