If you’re a self-employed individual and you requested an extension–heads up!
October 16, 2017, is the deadline for filing tax returns for 2016. It is the last day the IRS will accept an electronically filed tax return using forms 1040, 1040A, and 1040EZ.
If you file after October 15, you’ll have to mail in your tax return for processing. This also falls in line with another upcoming date April 18, 2018, where penalties and interest will begin to accrue on top of those unpaid taxes–regardless of any time extension given. Free File is available for anyone who makes $64,000 or less. Even if you can’t pay by the deadline, there are benefits to filing anyway, like dodging the failure-to-file penalty. This can be anywhere from 5% to 25% while waiting 60 days or longer can amount to $205 or even 100% of the unpaid tax.
Also, entrepreneurs and businesses who asked for an extension with their SEP IRA or solo 401(k) will also have until October 16, 2017. SEP plans (with an extension) can be funded up to that October 16 and those contributions willb e deducted on your 2016 tax return. If you’ve decided that the SEP IRA is right for you and still would like to set up and contribute to an account, there’s still time. Although it’s always recommended not to wait until the last minute, you can still take action as late as the due date.
thedigitalCPA is here to assist any way we can. Don’t hesitate to send us an email or call the office for some advice on the next steps to your financial well-being!