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Question
Good afternoon Can you please tell me, if I make an extension, then in any case I need to pay taxes before April 18? And if this is not done, what will be the fine and interest? And how to find out how much to pay on time, if the declaration has not ye
AI accountant’s answer:
Good afternoon! If you file an extension for your 2022 tax return, you'll have until October 16, 2023, to file your return. However, an extension to file does not grant you an extension to pay. You are still required to estimate and pay any tax owed by the original due date, which is April 18, 2023. If you do not pay the taxes due by April 18, 2023, you may be subject to penalties and interest. The failure-to-pay penalty is typically 0.5% of your unpaid taxes per month or part of a month after the due date, up to a maximum of 25%. Interest is also charged on the unpaid tax amount, and the current rate is the federal short-term rate plus 3%, although the rate can change quarterly. To estimate how much you need to pay by the due date, you may need to review your income and deductions for the tax year to determine your expected tax liability. You can use your prior year's tax return as a starting point and adjust accordingly for any changes in your income and deductions. Alternatively, you may use tax estimation tools available online, though keep in mind that these are only estimations and may not be precise. Remember to make your estimated payment when you file your extension through Form 4868 or use the Electronic Federal Tax Payment System (EFTPS) or IRS Direct Pay to make the payment.
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Jacques Seys, CPA
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