It’s extension season, and the IRS is gearing up to receive your 2022 returns. The extension deadline this year for 2022 Partnership (Form 1065) and Subchapter S Corporation (S Corps, Form 1120S) tax returns is September 15, 2023. The extension deadline for individual 2022 returns is October 16, 2023. Certain members of the military (https://www.irs.gov/individuals/military) and support personnel in combat zones (https://www.irs.gov/newsroom/extension-of-deadlines-combat-zone-service) may have different filing deadlines. Taxpayers who have been affected by officially declared natural disasters may also have relief on their 2022 filing deadlines (https://www.irs.gov/newsroom/tax-relief-in-disaster-situations). Of course, the sooner you file your return, the sooner you will receive your refund.
Get ahead of the tax deadline
The IRS encourages taxpayers to file before the deadline to avoid a rush in processing the returns. Another tip from the IRS is to choose direct deposit for your refund. That gets money back to you much faster than waiting for a check to arrive by mail. If you are planning to file your 2022, now is a great time to get documents together. Any overlooked W-2 or 1099 could cause your return to be rejected or could generate an IRS tax notice.
What If I owe taxes?
If you owed a balance due for the 2022 tax year, you should have paid with your extension filing in the spring. If you find that you need to pay more than you already have for 2022, it’s better to pay as soon as possible to avoid accumulating penalties and interest. There are many payment options on the IRS
website (https://www.irs.gov/payments) including short- and long-term payment plans. If you are not
able to pay in full now, starting a payment plan will not waive penalties and interest but can help you pay
off your debt in a more manageable way. If you owe a large sum, you may be a candidate for an Offer in Compromise.
The team at Positive Rate Tax can help with both payment plans and offers in compromise as well as responding to IRS letters or notices.
