The IRS has released some tax tips for anyone who hasn’t yet filed a 2017 tax return. The due date was extended to April 18th after technical snafus at the IRS in accepting e-filings.
• If a refund is due, there will be no penalty for the late filing.
• The IRS Free File online tax filing system will continue to be available for the 2017 tax year through October 15, 2018. However, some taxpayers will not qualify for the Free File tool.
• If a return showing taxes are owed is filed more than 60 days after the April due date, the minimum penalty is the lesser of 100% of the unpaid tax or $210. The normal failure-to-file penalty is 5% of the amount due for every month that the return is late.
• Failure to file penalties may be waived if there was a good reason for the failure, such as being hospitalized for a sudden illness. An explanation of the reason for the lateness should be attached to the return.
• Taxpayers who have a history of filing and paying on time often qualify for penalty relief. A taxpayer usually will qualify for this relief if he or she hasn’t been assessed penalties for the past three years and meet other requirements.
• If an error is discovered after the tax filing, it may be corrected with an amended tax return, 1040X. However, filing that return may not be necessary. The IRS has an online tool— Should I File an Amended Return?—to help taxpayers determine whether they should file an amended return to correct an error or make other changes to a return. If the 1040X is needed, it must be filed on paper; there is no e-filing available.
• If a refund was claimed on an original return, the IRS recommends postponing the filing of a 1040X until the original return is processed.
• Remember, the IRS will never make an initial, unsolicited contact via email, text or social media on filing, payment, or refund issues. Usually, the IRS initiates contact through regular mail delivered by the U. S. Postal Service. Any email that appears to be from the IRS about a refund or tax problem is probably an attempt by scammers to steal personal or financial information. Forward all such e-mail to email@example.com.
At The Trust Company of Kansas, we help people. We promise to minimize the burden of wealth management, and bestow the freedom to enjoy everything else. The officers at The Trust Company of Kansas are always willing to discuss your financial goals with you and help you to create a plan that is well-aligned with your wishes. If you have a specific question about wealth management, please contact us at (800) 530-5254 or visit tckansas.com/contactus, and one of our Certified Trust and Financial Advisors will be happy to assist you.