Article Highlights:
- Filing Due Date
- Disaster Area Filing Due Dates
- Extensions
- Balance-Due Payments
- Contributions to Roth or Traditional IRAs
- Individual Refund Claims for the 2019 Tax Year
- If There is Still Missing Information
As a reminder to those who have not yet filed their 2022 tax returns, April 18, 2023 is the due date to either file a return (and pay the taxes owed) or file for an automatic extension (and pay an estimate of the taxes owed). The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia – even if you don’t live in DC.
NOTE: If you live in a federally declared disaster area your due date may have been automatically extended. The extension will apply if you reside in the disaster area, and you need not be directly affected by the disaster to qualify. Check the IRS website at Tax Disaster Relief Situations for areas that have disaster filing relief extensions. For example, taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments. Call this office to confirm you qualify and for information related to state disaster relief due date postponements.
For those not covered by the disaster area filing postponement, and who need to request an extension, caution should be exercised when preparing the extension application, which is IRS Form 4868. Even though this form is described as “automatic,” the extension is automatically granted only if it includes a reasonable estimate of the 2022 tax liability and only if that anticipated liability is paid along with the extension application. It is not uncommon for taxpayers to enter zero as the estimated tax liability without figuring the actual estimated amount. These taxpayers risk the IRS classifying their forms as having been improperly completed, which in turn makes the extensions invalid. If you need an extension, please contact this office so that we can prepare a valid extension for you.
The extension must be filed in a timely manner; at this office, we can file your extension electronically before the due date and have any amount owed withdrawn from your bank account. If you do decide on mailing an extension, be advised that the envelope with the extension form must be postmarked on or before the April 18 due date. However, there are inherent risks associated with dropping an extension form in a mailbox; for instance, the envelope might not be postmarked in a timely fashion. Thus, those who have tax due should mail their extension forms using registered or certified mail so as not to risk late-filing penalties.
In addition, the April 18 deadline also applies to the following:
- Balance-Due Payments for the 2022 Tax Year* – Be aware that Form 4868 is an extension to file, NOT an extension to pay. The IRS will assess late-payment penalties (with interest) on any balance due, even when the extension has been granted. Taxpayers who anticipate having a balance due need to estimate this amount and include payment for that balance, either along with the extension request (as indicated above) or electronically by this firm or through the IRS website.
- Contributions to a Roth or Traditional IRA for the 2022 Tax Year* – April 18, 2023, is the last day for 2022 contributions to either a Roth or a traditional IRA. Form 4868 does not provide an extension for making IRA contributions.
- Individual Estimated Tax Payments for the First Quarter of 2023* – The first installment of the 2023 estimated tax payment is due on April 18, 2023. If you make estimated tax payments and do not file the first installment on or before April 18, 2023, then that payment is late, and you should file it as soon as possible to mitigate any penalties.
- Individual Refund Claims for the 2019 Tax Year – The regular three-year statute of limitations expires for the 2019 tax return on April 18 of this year. Thus, no refund will be granted for a 2019 return (original or amended) that is filed after April 18, 2023. Taxpayers could risk missing out on the refundable Earned Income Tax Credit, the refundable American Opportunity Tax Credit for college tuition, and the refundable child credit for the 2019 tax year if they do not file before the statute of limitations ends. Caution: The statute does not apply to balances due for unfiled 2019 returns.
*Those in specified disaster areas will have these deadlines postponed to October 16, 2023.
Please contact this office related to filing for state extensions or to see if you qualify for a disaster-related extension.
If your 2022 return is still pending because of missing information, please forward that information to this office as quickly as possible so that we can ensure that your return meets the April 18 deadline. Keep in mind that the last week of tax season is very hectic, and your returns may not be completed in time if you wait until the last minute. If you know that the missing information will not be available before the April 18 deadline, then please let us know as soon as possible so that we can prepare an extension request.
If you have not yet completed your returns, please call this office right away so that we can schedule an appointment and/or file an extension for you.
