To tell the truth, it seems like there is never enough time to file returns. Even the COVID-19-affected deadline in 2021 came and went like a comet in the night sky.

Last year, taxpayers got an extra month to get their ducks in a row and file returns. This year also IRS gives us a little slack, yet it is just a mere weekend. As the federal tax deadline, April 15, falls on Emancipation Day, the 2022 taxes new due date is the next business day, April 18.

However, taxpayers from Massachusetts or Maine will get another day relief. Due to the celebration of patriot’s day in those states, their tax deadline is April 19.

As for relief, there are also some states that truly deserve a little breather. These include tornado-hit states like Tennessee, Illinois, and Kentucky and wildfire-affected states like Colorado. The due date for taxpayers in those states is May 16.

Tax Deadline for State Taxes 2022

Most states usually set their state tax deadline the same as the federal one. However, there are always some exceptions. Six states that don’t match taxes deadline and go their own way. Following are those six states and their respective state tax deadlines.

However, unlike the federal tax deadline, state tax deadlines are subject to change, so it is best to stay current with the state department of revenue.

When Is the Last Date to Apply For An Extension?

The tax deadline, April 18, is the last date to apply for an extension. Those who fail to do so get hit with late-filing penalties and other applicable penalties and interest charges.

The taxpayers who don’t file and pay taxes timely must pay failure-to-pay and failure-to-file penalties. The two may add up to 47.5% of the owed dues. Thus, applying for an extension before time saves taxpayers from one of the two; failure-to-file penalty.

However, there is no way to evade failure-to-pay interests and charges. You would have to pay those even if your extension is accepted. As per the IRS, the penalty is 0.5% of the unpaid tax amount per month until a full settlement is made.

How to Apply For An Extension?

Form 4868 is the one you need to submit to buy a six-month extension. It will extend your returns taxes due date to October 17.

No matter what you choose; to file or extend, every taxpayer must pay taxes before the original deadline, April 18. No extensions or delays are acceptable.

IRS hits you with fees and penalties for every month delay from that point forth. However, the question is how to know whether you owe IRS or not.

It’s simple. You can either hire a tax professional to give you an estimate of your taxes or you could put the math cap on and do it by yourself with the help of Form 1040 ES.

Key Dates to Remember For Business

Though the dates match a bit, businesses follow their own tax calendar. Every business owner must remember these five dates to ensure their business stays tax compliant and save from tax penalties and fees.

• January 31, 2022 – The first date to know is January 31^st. Though it has passed, it is best to put this in as a gentle reminder for the year to come. January 31^st is the deadline to submit employees’ W-2 forms to the IRS and mail copies to employees as well. The date is also the due date for independent contractors to submit 1099 forms.

• March 15, 2022 – A key date in the business calendar, especially for S-corps and partnerships. March 15 was the deadline to file business returns. May IRS have mercy on those businesses that failed to do so.

• April 15, 2022 – At last, a date that is yet to come. April 15 is the tax due date for corporations to file their business returns. No Emancipation Day break for them.

• September 15, 2022 –The final day for S-corporations and partnerships to file 2021 business returns. The ones who were alarmed enough to file for an extension.

• October 17, 2022 – The final day for corporations to file 2021 business returns. Again, only for those who submit their extension on or before April 15.

Why File Returns Before Deadline?

Even though IRS gives you considerable time to file returns, it is best to never wait for the eleventh hour. There are two reasons behind it.

Firstly, it delays your refunds. The IRS is usually diligent in paying refunds and repays 90% of taxpayers within three weeks from the day the taxpayer files returns. So, the longer you stall, the longer you must wait to get back what’s rightly yours.

Secondly, delaying filing increases the risks of identity theft. Your refunds are never safe till you file and get it back. There’s a chance a fraudster may file on your behalf and run your refunds dry. Yes, there is a way to prevent identity theft, however, you have to go to IRS and set up an identity protection pin to do so.

Safe to say, it is best to avoid delay and keep your refunds safe. Pay taxes as soon as possible and stay in control of your finances.

Moreover, paying on time is not only beneficial for taxpayers with positive returns. It also helps those who must pay IRS and can’t afford to do so on time. The early filing gives you more time to set up a tax payment plan and ensures you don’t get the worst of penalties.

See Also: How Much Does An Average American Tax Payer Pay?

Wajiha Danish

Wajiha is a Brampton-based CPA, CGA, and Controller with 17+ years of experience in the financial services industry. She holds a Bachelor of Science Degree in Applied Accounting from Oxford Brookes University and is a Chartered Certified Accountant. Wajiha spearheads Monily as its Director and is a leader who excels in helping teams achieve excellence. She talks about business financial health, innovative accounting, and all things finances.