Are there penalties for filing a tax extension?
BIRMINGHAM, Ala. (WBRC) - A Mountain Brook tax preparer said it usually never fails, those who wait until the last minute to file taxes rush in with receipts wanting to file before the deadline, but Alecia White owner of JMA Enterprises said the majority of the time, an extension must be filed.
Just days before Tax Day, May 17, White posted a picture of her desk covered with receipts from a last-minute client.
“He’s a truck driver. He’s an independent truck driver. So, he has to keep gas receipts. Every time he weighs the truck, those gold receipts are weigh-station receipts,” White explained.
White said with it being so close to the deadline she’ll likely have to file an extension.
“[People wait because] they think that if they owe [money], then the more that they wait, the less that they have to deal with it. I tell everybody I can do your taxes on Feb 1st, but your payments aren’t due until the last day of the tax season,” White explained.
For those who have decided to wait until the last minute, filing an extension is a good idea depending on your situation, according to White.
“If you’re getting a refund, you’re buying yourself more time. If you have to pay, it’s good to send a payment in with the extension because the payment is due on the 17th of May because the interest starts on the 18th of May,” White said.
She says it’s important to get your taxes filed and paid as soon as possible because the interest accrues daily.
You can get an estimate of owed taxes from your preparer of the Internal Revenue Services official site.
White said if you overpay, you will get a refund.
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