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The Deadline to File Taxes for 2010 is Fast Approaching

If you requested an extension, make sure to file your 2010 taxes before the October 17 deadline

Attention! Tax deadline approaching! If you’re one of the people who requested a six month extension way back in April to file your individual 2010 tax return, then Monday, October 17, 2011 is the deadline for filing federal income tax online.

2011 has been the year of delayed tax deadlines. Thanks to the special District of Columbia holiday Emancipation Day, the regular deadline to file taxes 2010 was pushed back from April 15 to April 18. And now the deadline for extension filers is pushed back as well. Normally the IRS gives you until October 15, but since this year the 15th happens to fall on a Saturday, you’ve got until Monday the 17th.

Even though you’ve got a few extra days to prepare those returns, don’t let the delayed deadline lull you into procrastination. The October 17 income tax deadline is right around the corner, only a month away in fact. If you don’t want to get caught in a rush at the last minute, now is the time to get your paperwork in order and start preparing your return. Continue reading “The Deadline to File Taxes for 2010 is Fast Approaching”

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The IRS commissioner has a vision. No space aliens or fluffy unicorns involved.

Doug Schulman opens the aperture wide on the future of the tax system.

IRS commissioner Doug Schulman’s annual speech at the National Press Club a week ago was substantively bolder than last year’s somewhat defensive plea on behalf of the IRS’s commitment to service as opposed to mere enforcement. This time around, he proposed no less than to, in his words, “open the aperture wide” and offer a view of our quickly evolving tax system that “takes us to its very horizon”.

The commissioner was quick to point out that he did not intend to peddle in the kind of science fiction that would befit a Worlds of Tomorrow anthology but instead to present a vision of the future grounded in the recent developments in tax processing that modern technology has made possible. It was an engaging performance, bolstered by a challenging proposal that, we suspect, will not escape controversy.

The goal of the IRS in Schulman’s take is to move beyond what he calls the “looking back” business model which, according to the commissioner, has governed the agency’s operations since its creation during the Civil War, above all when it deals with matters of tax compliance. Continue reading “The IRS commissioner has a vision. No space aliens or fluffy unicorns involved.”

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File your income tax extension before the April 18th income tax deadline

Consider filing a tax extension and do it online for free!

The few short days remaining before the tax deadline may not be long enough for you to get your records in order, especially if they involve such delicate matters as testimonials. In that case, you should file an extension. This is because you absolutely want to avoid the failure to file penalty as it is the most onerous. You can file a tax extension online for free right here.

Even if you don’t believe you owe any taxes, and therefore would suffer no penalty for late filing, it is strongly advisable to opt for an extension, because if it turns out you’re wrong it will cost you dearly. The penalty for late filing is 5% of the tax balance due per month up to a maximum of 25%. Filing a tax extension online will push your tax deadline forward six months to October 17th and exempt you from the penalty.

If you have a tax liability and owe the IRS money but are unable to pay in full a tax extension will also give you some breathing room to save the needed cash. However, note that you will still incur the penalty for late payment of taxes unless you can demonstrate reasonable cause to the IRS for not paying on time. The penalty for late payment is 0.5% of the amount owed for each month from the deadline until the tax is paid in full. You can avoid it by paying at least 90% of your tax liability.

In addition, the IRS will charge you interest monthly on the total owed until the tax is paid in full. The rate of interest is currently posted at 4% annually and is open to change quarterly. Note that irrespective of whether you’re exempt from the late payment penalty you will still be billed interest.