October 15, 2019 can signify several important tax deadlines. I will only be pinpointing a few that effect most filers.
For individuals it is the last day that you can electronically file your 2018 Income Tax Return if you filed for a 6-month extension to file. Any income taxes owed for the 2018 tax year should have been paid with the extension. The extended deadline did not buy you more time to pay any taxes owed!
Still not ready to file? We recommend gathering as much information as possible and hiring a professional to prepare and file your return before the deadline. The penalties for not filing are generally higher than not paying all taxes owed by the due date. After the October 15, 2019 deadline passes, you will begin to face the failure-to-file penalty, which is 5% of the amount owed for every month (or part of) in which taxes go unpaid. The maximum for this penalty is 25% of your unpaid taxes!
If you are unable to pay your tax liability, file now and pay what you can. We can help you determine which IRS plan best fits your needs!
What does October 1st and October 15th mean for the self-employed? This goes for independent contractors and LLC business owners. October 1st is the deadline to set up and fund a SIMPLE IRA and for those business owners who received a 6-month filing extension, October 15th is the last day to set up and fund a SEP IRA or solo 401K.
To discuss how any of these plans can benefit your tax situation, call today for an appointment! 203-296-0391