Let me ask you something. What happens in you don’t file your return by the extended due date?
Scenario Balance due return.
You will pay late payment penalties and interest charges for filing and paying your tax return late, So in case you have a balance due. Late filing penalty. Big mistake! Of course you don’t file the return as long as you think that if you can’t pay the tax you’re better off not filing the return, October 15 is here and you still don’t have the money, Let’s say you owe $ 1000 and you filed the extension on April 15. Example.
This penalty applies even if you are late just one day. You’ll pay $ 50 for any month that the return is late, So if you don’t file the return by October 15.
The penalty is ‘one half’ of one the tax percent due for every month or part of a month that the payment is late, up to 25.
As long as the extension only extends the time to file the return, known as the ‘failuretopay’ penalty, it applies if you have a balance due and do not pay it by April Filing the extension does not eliminate this penalty, not the time to pay the tax. Late payment penalty. Essentially, interest charges. Scenario Refund. So there’s no penalty for late filing as the starting point for any penalty calculation is the quantity of tax due, if you are getting a refund. Basically, no tax due, no penalty. Brought to you by Wayne Davies.