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Jackson Hewitt® Reminds Taxpayers to File Before the May 17 DeadlineJERSEY CITY, N.J., May 10, 2021 /PRNewswire/ -- The deadline to file 2020 federal tax returns is next week – except for Texas, Oklahoma, and Louisiana residents who have until June 15, 2021 to file due to the recent winter storms. Jackson Hewitt Tax Service® reminds all other taxpayers who have yet to file their tax return to do so by May 17, 2021. Taxpayers who need more time to file can file an extension to avoid any late-filing IRS penalties or interest that could result from missing the tax deadline. "Jackson Hewitt Tax Pros are prepared to help their clients navigate filing their 2020 tax returns before the tax deadline," said Mark Steber, Chief Tax Information Officer at Jackson Hewitt. "If a taxpayer knows they cannot meet the deadline, we encourage them to contact their Tax Pro and file an extension before May 17." If taxpayers need additional time, they should file IRS Form 4868 to extend their tax return filing until October 15, 2021. However, payment is due May 17, 2021 even with an extension and many states have their own forms and extension rules. "Be aware that an extension does not delay the payment due date if you owe money," said Steber. "If taxpayers don't pay their taxes by the 2020 tax deadline, May 17, they can get hit with penalties and interest – even if they enter into an Installment Agreement with the IRS." There are some people, however, who won't need to fill out Form 4868 as they will automatically get an extension under the law:
Taxpayers don't want to miss the tax deadline and risk IRS penalties, specifically the two common penalties that taxpayers might face if they miss the tax filing and tax payment deadline: failure-to-file on time and failure-to-pay on time. Failure-to-file penalty: This is a penalty for not filing a return or filing an extension. It is generally 5% of the unpaid tax amount each month, and it caps out at 25%. Late filers are assessed the failure-to-file penalty for each month they did not file. Generally, a federal return that is due a refund does not get this penalty; however, some states do penalize late refund returns. If a taxpayer files late, it's best they get some professional tax help to manage the issues – for both federal and state. Failure-to-pay penalty: This penalty applies if at least 90% of a taxpayer's expected taxes due are not paid by the due date of May 17. This penalty is much less costly; it starts at 0.5% or 1/ 2 a percent of unpaid taxes each month, and it also caps out at 25%. So less costly on a monthly basis but does it add up fast over time. The failure-to-file and failure-to-pay penalties are combined each month a taxpayer is assessed both penalties. The combined penalties are not usually allowed to be greater than 25% of the taxes owed. Interest is compounded daily, meaning the numbers grow fast – and the taxpayer could owe the IRS a lot of money in interest. States also have their own rules, interest and penalties, although similar to federal– as long as the state has income tax, which 43 of them do. To support taxpayers who have yet to file, Jackson Hewitt offers a variety of ways to file:
For more information and to find the nearest Jackson Hewitt office visit jacksonhewitt.com/officelocator. About Jackson Hewitt Tax Service Inc.
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