As the federal government grapples with a shutdown, taxpayers are reminded that the October 15 deadline for filing taxes remains unchanged. Despite the furlough of many IRS employees, essential personnel continue to process electronically filed tax returns.
According to Tom O’Saben, Director of Tax Content & Government Relations at the National Association of Tax Professionals (NATP), timely filing is crucial. This deadline applies primarily to individuals who had previously requested a six-month extension in April. Additional extensions are available for those in federally or state-declared disaster zones.
Reflecting on over three decades in the tax profession, O’Saben notes, “The only time I’ve ever seen a change in the due date was when we went through COVID.”
The IRS had prepared a contingency plan to maintain operations for five days amidst the shutdown, but that period has elapsed, leading to employee layoffs. This will likely result in reduced service levels, especially for those mailing returns or seeking assistance via phone.
“There will likely be a dramatic impact on the level of service that’s available,” O’Saben remarked, urging taxpayers to file electronically whenever possible.
Lisa Greene-Lewis from TurboTax highlights the consequences of missing the deadline. A failure-to-file penalty could apply, amounting to 5% of the owed amount monthly, unless a refund is expected. In such cases, timely filing is still recommended to expedite refunds.
In certain uncontrollable situations, taxpayers may appeal penalties, O’Saben advises. Greene-Lewis also recommends organizing all documentation to optimize deductions and credits.
—
Read More Michigan News
