Monday, October 15, 2012
TODAY IS "THE DAY"!
Today is the final deadline for filing your 2011 federal and state individual income tax return.
That is not to say that I, and my fellow tax professionals, will no longer be faced with any more GD extensions this year (I wish!). It only means that today is the last day to mail in your properly extended 2011 Form 1040 or 1040A, and state tax return, and be considered to have filed on time. I still have some GD extensions to do – and probably have not received them all “in hand” yet.
There is really only a problem if you owe your Uncle Sam (and/or whatever Uncle applies to your state). Penalties are assessed on the unpaid balance due. If you will be getting a refund you can file your 2011 return next year and you will not be penalized.
There is a big difference if you do owe money to an "Uncle". On the federal level the monthly penalty rate for “filing late” with a balance due is ten times as much as that for “paying late” – 5% per month (.05) vs ½ of 1% per month (.005). Penalties also increase on state returns not timely filed.
So the bottom line – if you have not already done so, get your 2011 tax returns in the mail today, even if you cannot pay all, or any, of the tax due.
And, of course, do not walk into a tax professional’s office at lunch time today and expect to have your return prepared in time to meet the deadline.