The clock is ticking, and the tax deadline is looming. If you haven’t already done so, it’s time to get your paperwork in order and file your taxes. The deadline this year has been extended to May 17th, a month later than the traditional April 15th deadline. This extension was granted by the Treasury Department and the Internal Revenue Service (IRS) in response to the ongoing COVID-19 pandemic.
Understanding the Extension
The IRS announced that the federal income tax filing due date for individuals for the 2022 tax year would be automatically extended from April 15, 2023, to May 17, 2023. This extension was designed to give taxpayers extra time to navigate the unusual circumstances related to the pandemic.
The IRS Commissioner, Chuck Rettig, stated, “This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities.”
The Importance of Filing Early
Despite the extension, the IRS urges taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.
Postponing Federal Income Tax Payments
In addition to the filing extension, individual taxpayers could also postpone federal income tax payments for the 2022 tax year due on April 15, 2023, to May 17, 2023, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax.
However, it’s important to note that penalties, interest, and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2023. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Requesting Further Extension
For those who need additional time to file beyond the May 17 deadline, they can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software, or using the Free File link on IRS.gov.
However, this extension does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2023, to avoid interest and penalties.
State Tax Returns and Other Considerations
The federal tax filing deadline postponement to May 17, 2023, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2023, not state tax payments or deposits or payments of any other type of federal tax.
Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.
In certain cases, such as severe storms that hit California this winter, the IRS and Franchise Tax Board (FTB) announced that tax deadlines for State and Federal taxes have been extended for most Californians to October 16, 2023.
The tax deadline of May 17th is fast approaching. It’s crucial to understand the implications of this extension and what it means for your tax filing and payment obligations. Whether you’re filing early, taking advantage of the extension, or requesting additional time, it’s important to stay informed and take the necessary steps to avoid penalties and interest.
Remember, when it comes to taxes, it’s always better to be early than late. So, start preparing now, and make sure you file your taxes by the looming May 17th deadline.