2016 continues to speed right along – can you believe we’re roughly just a month away from the summer season? Even though we’ve gotten through the initial business, personal, and exempt organization tax deadlines, the tax season is far from complete if you filed any extensions.
Even though you may consider foresight a stretch, the following extended due dates are just over the horizon. And if you’re not ready this time around, you will incur IRS penalties – there won’t be any second chances, my friend.
Business Tax Extension Form 7004
– Extended tax deadline is September 15, 2016Personal Tax Extension Form 4868
– Extended tax deadline is October 17, 2016Exempt Organizations Extension Form 8868
Part I – Extended tax deadline is August 15, 2016
For those of you who filed IRS Form 7004 or 4868 back in March and April, you have no other options but to file your tax return with the IRS at the end of your 6-month extension. If not, you’ll find yourself paying the following fees out of pocket:
- 5% of the unpaid taxes each month or part of month your return is late – up to 25% of your unpaid tax
- 100% of the unpaid tax or $135 minimum penalty – whichever is smaller – for returns that are more than 60 days late
Remember: Tax extensions can only extend your time to file. If you have any taxes to pay to the IRS, they’re required to be paid by your original deadline. Failing to file can lead to:
- Penalties of .5% to 1% of your unpaid taxes each month or part of the month your taxes aren’t paid – up to 25% of unpaid taxes
For more information about late filing or paying penalties, check out our insightful blog, “Failure to File versus Failure to Pay.”
Exempt Organization Extension
Nonprofits and charities have a little bit more breathing room. Even though your extension is only for three months, you have the option of extending your deadline another three months with IRS Form 8868 Part II. If you don’t file either the IRS Form 990/990-EZ or extension form before the deadline, you could face:
- A penalty charge of $20 or $100 each day your tax return is late – based on your gross receipts
- A maximum penalty as high as $50,000, or 5% of your gross receipts
For those organizations that decide to extend their deadline even further, your final due date this year is November 15.
Don’t let these extended deadlines catch you off guard – for a lot of you, you’re at the point of no return, which can only lead to penalties if you fail to file on time. If you have any questions about your automatic tax extension, give our e-filing experts in Rock Hill, South Carolina at call at (803) 514-5155, Monday through Friday from 9 a.m. to 6 p.m. EST, or email us at [email protected].