The Internal Revenue Service (IRS) wants people to remember that they don’t have to wait until October 15, 2024, to file their 2023 tax return. Please keep in mind that some people have been granted more time.
They must have paid all of their tax, though, before April 15, 2024. If they don’t, they might have to deal with the agency’s failure to pay charge, which is awful if you are tight on cash. Please do not wait until October 15 to file; do it now.
Average tax refunds unveiled by the IRS
The average tax return as of May 10, 2024, was $2,869, according to the IRS. It’s about 2% more than in 2023. Some voters asked for a direct deposit, but others still would rather have a paper check.
Those taxpayers who asked for a direct payment got one worth an average of $2,960, which is 3.1% more than the year before. Hopefully, you can get the same amount.
However, some people may not get a tax refund. Instead, they may have to pay a lot of money in taxes. People who are short on cash might not pay their taxes, which could lead to IRS debt and fines.
IRS failure to file penalties
If you were given an extension to file and don’t do so by October 15, you might have to deal with the effects. The IRS says that the fine you have to pay is a portion of the taxes you failed to pay on time.
Of course, the longer you wait to pay your taxes to the IRS, the bigger the fine will be. In this case, the punishment for not filing is 5% of the taxes you did not pay for every month (or part of a month) that your tax return is late.
The Internal Revenue Service says the fine won’t be more than 25% of the taxes you didn’t pay. In some cases, you may also have to pay a fine for not paying. There is a chance of combined penalties. Also, a punishment might reach its highest point, so be careful.