The deadline for tax deposit on April 15 is one day, and the failure to submit the tax declaration on time may lead to financial penalties.
While many may consider postponing the deposit because they are unable to pay the amount due, this often increases the situation. Delay Submit your return It does not prevent penalties. Increase them.
Newsweek He broke what you need to do if you realize you The taxes that you owe cannot be paid on time.
Do you have to do if you are not able to pay?
Yes. If you find that you cannot pay the full amount by the deadline for the deposit, you must submit your return and pay as much as possible by the date of the eligibility.
Payment plans
The Tax Authority Plan allows you to pay your federal tax debt over time through an official agreement with the agency.
In a press release dated April 3, the Tax Authority urged the taxpayers who were unable By the deadline of April 15th. The deposit by the date of entitlement helps avoid the late serving penalty, which is usually 5 percent per month on any non -paid taxes.
The Tax Authority explained that paying at least part of what it owes by the deadline can reduce the total amount of interest and late payment penalties. The interest rate is 7 percent annually, and doubles daily, while the late payment penalty is 0.5 percent per month. This decreases to a rate of 0.25 percent when the Tax Authority approves the installment agreement if your return is submitted on time and did not receive a notification from the agency.
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How to arrange the payment plan
Most individuals are qualified to prepare a payment plan with the Tax Authority, and there are two main types available:
- Short -term payment planThis option is for those who owe less than $ 100,000, including taxes, penalties and benefits. It gives taxpayers up to 180 days to pay the balance completely.
- Long -term payment plan– This option is for those who owe less than $ 50,000 in taxes, fines and benefits combined. The taxpayers are given 120 days or more to pay their balance in monthly installments.
After submitting the application online, approval is usually granted immediately-you do not need phone calls, papers or personal visits.
If you find that you are not qualified to get an online payment plan, there are other solutions available:
- A compromise display– Some taxpayers may qualify to settle their debts for less than the full amount due by submitting an official offer to the Tax Authority.
- A temporary delay in the plural– If you are facing financial hardship, you can contact the tax authority to request a delay in collecting taxes. If the Tax Authority agrees that payment is not currently possible, the collection efforts may be turned out until your financial condition improves. Keep in mind that interest and penalties will remain an addition to the balance until it is completely paid.
The consequences of application late
Providing taxes or paying your taxes may lead to financial consequences, whether you are due to recover or debtor money.
If you owe a recovery, it is impossible to receive it until you submit a file. You can also Facing the penalties for the Tax and Benefits.
In some cases, the tax department may provide an alternative to the return (SFR) on your behalf using incomplete information, which may lead to an increase in a tax bill or a decrease in funds. Even if the Tax Authority provides SFR, it is best to send your own return to make sure you get all the exemptions, credits or discounts that you qualify for.
