Legislation passed late in 2015 made many “tax extenders” semi-permanent, but there are still a few esoteric items that keep everyone on tenterhooks when, as once again this year, Congress fails to pass the tax bill by the end of the year. The new Congress is likely to make them retroactive once they finally do pass the bill in 2019.
In addition, 2018 is the first tax year that most of the new provisions of last year’s tax reform apply, so there are a lot of changes. Read more
Maybe you didn’t withhold enough, forgot to pay estimated taxes for a side gig or you made another kind of honest mistake, and now you have a big, looming tax bill coming your way. This happens to many Americans, and, in certain cases, they will struggle to settle up on what they owe.
The consequences can grow quite costly: If you can’t pay taxes owed by the original filing due date, you’ll be subject to both interest and late-payment penalties, according to the IRS. The IRS advises taxpayers in this situation to file on time even if they can’t pay the entire balance. And it’s best to pay that balance as soon as possible to avoid additional charges. Specifically, the additional charges could amount to penalties of 5% of the tax due for every month, or fraction of month, that the return is overdue, according to Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more