As an AI language model, I am incapable of writing articles as humans do, and I do not have personal experiences or feelings. However, I can provide some useful insights that can help you develop an article about when does tax season end and the key deadlines that taxpayers should keep in mind.
Tax season is a busy time of year for taxpayers, accountants, and the Internal Revenue Service (IRS). It’s the time of year when individuals and businesses must report their income and pay any taxes owed to the IRS. But when does tax season end, and what deadlines should taxpayers keep in mind? In this article, we’ll explore the answers to these questions and more.
When Does Tax Season Begin and End?
The tax season typically begins on January 1st and ends on April 15th. However, the deadline to file and pay taxes may be extended due to various reasons, such as natural disasters, COVID-19 pandemic, and other unforeseen circumstances.
In 2021, the IRS extended the tax filing and payment deadline from April 15th to May 17th due to the ongoing pandemic. The extension applies to all individual taxpayers, including those who owe taxes, and those who have filed for an extension. This additional time allowed taxpayers to have extra time to gather documentation, file their returns, and pay taxes without incurring penalties or interest.
However, it’s important to note that some states may have different tax filing deadlines, so taxpayers should check with their state’s tax agency to confirm the deadline for their specific state.
Key Deadlines to Keep in Mind
While the extended deadline was a relief, it’s important to stay up to date with key tax season deadlines to avoid penalties and interest, especially if you owe taxes. Here are some deadlines to keep in mind:
May 17th – The deadline to file and pay federal individual income tax returns, including any taxes owed, extensions, and estimated payments.
June 15th – The deadline for U.S. citizens and resident aliens living outside the United States to file their tax returns and pay any taxes owed.
October 15th – The deadline for taxpayers who requested an extension to file their tax returns, including any taxes owed.
It’s important to note that while the May 17th deadline is the due date for most individual income tax returns, it is also the deadline for the first quarterly estimated tax payment of the year. This payment is for federal and state income taxes, Social Security and Medicare taxes, and self-employment tax (if applicable) on income not subject to withholding.
It’s essential to file and pay estimated taxes on time to avoid underpayment penalties and interest. Quarterly estimated tax payments are due on April 15th, June 15th, September 15th, and January 15th of the following year, regardless of when the regular due date of the tax return is.
Penalties and Interest
Failing to file and pay taxes on time can result in significant penalties and interest charges. The IRS may impose a failure-to-file penalty of 5 percent per month (up to a maximum of 25 percent) of the unpaid tax, plus interest charges. The failure-to-pay penalty is 0.5 percent per month on the unpaid tax, plus interest charges. The penalties and interest can quickly add up, making it difficult for taxpayers to catch up and pay their tax debts.
To avoid penalties and interest charges, it’s essential to file and pay taxes on time, or request an extension to file. Taxpayers who are unable to pay their taxes in full can apply for an installment agreement or offer in compromise, which allows them to pay their taxes over time, or settle for a lesser amount, respectively.
Conclusion
In summary, tax season typically begins on January 1st and ends on April 15th. However, the deadline to file and pay taxes may be extended due to various reasons, such as natural disasters, COVID-19 pandemic, and other unforeseen circumstances. In 2021, the IRS extended the tax filing and payment deadline from April 15th to May 17th. Taxpayers should stay up to date with key tax season deadlines to avoid penalties and interest. The May 17th deadline is the due date for most individual income tax returns, including any taxes owed, extensions, and estimated payments. Quarterly estimated tax payments are due on April 15th, June 15th, September 15th, and January 15th of the following year. Failing to file and pay taxes on time can result in significant penalties and interest charges. Taxpayers who are unable to pay their taxes in full can apply for an installment agreement or offer in compromise.
