Looking ahead to 2024, it’s prudent to mark significant dates on our calendars, including birthdays, anniversaries, and notably, the deadlines set by the Internal Revenue Service (IRS) for filing and paying federal income taxes.
It’s crucial to understand that while we file these tax forms in 2024, we are reporting income earned in 2023. To alleviate confusion, tax experts commonly refer to 2023 as the tax year and 2024 as the filing year. The majority of deadlines in 2024 pertain to tax year 2023, although there may be exceptions.
For Tax Day 2024, there is a noteworthy change. After five years, the deadline for filing 2023 federal income tax returns for most taxpayers reverts to the traditional date of April 15. The disruptions caused by the pandemic and various state holidays had altered the April 15 deadline in 2020 and 2021. However, we are now returning to the customary Tax Day deadline. It’s important to note that taxpayers residing in Maine or Massachusetts have until April 17, 2024, due to the Patriot’s Day and Emancipation Day state holidays.
Adherence to the filing deadline is crucial, as late filing incurs a penalty of 5 percent of the amount due each month, while the penalty for failure to pay is 0.5 percent per month, capping at 25 percent annually. In situations where both penalties apply in the same month, the total penalty is 5 percent per month (4.5 percent for failure to file and 0.5 percent for failure to pay). Additionally, interest accrues at the current rate of 8 percent.
If circumstances necessitate filing late, an automatic extension can be obtained by submitting IRS Form 4868. This extension grants an additional timeframe until October 15 to complete and file your return.
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