Tax Day, 2023

Tax Day 2023, the deadline for filing federal income tax return for income gained in 2022 will be Tuesday, April 18 instead of Saturday, April 15. When the tax deadline falls on a weekend, the IRS moves the deadline to the next business day. So, why isn’t Tax Day on Monday, April 17?

On Monday, April 17, the District of Columbia will recognize Emancipation Day as a holiday. Usually celebrated on April 16, Emancipation Day 2023 falls on a Sunday. The law dictates Tax Day to be on the nearest weekday, thus pushing the tax due date out another day.

If you need more time to file your federal return, you may file an automatic extension which will give you until October 18, 2023, to file your taxes. You must file your request for an extension no later than the regular due date of your return.

An important caveat:  filing for an extension gives you more time to submit your return, not to pay taxes due. You should estimate and pay any taxes owed by the regular deadline to avoid fines and penalties.

Don’t wait until the deadline

The IRS has set other important tax dates for when to file taxes.

  • Tax Day 2023 April 18th.
  • The IRS will start accepting returns in late January 2023. Get ahead of the game and file early if possible.
  • Those that file estimated tax payments, fourth quarter payments are due on January 17, 2023, for tax year 2022.
  • Employers must mail W-2 forms by February 1, 2023.

But if you do…

What are the consequences for filing late?

There is no penalty for filing a late return after the tax deadline if a refund is due. Don’t delay if you get a Premium Tax Credit to help pay for insurance. Failure to file a tax return could jeopardize that credit.

If you have a balance due on your taxes and have not paid it all by the filing deadline, the IRS may charge penalties and interest if you miss the tax deadline, and you can start to incur penalties as soon as the deadline has passed.

  • A past due payment penalty of 0.5% per month or fraction thereof, until the tax is paid
    • The maximum past due payment penalty is 25% of the amount due.
  • Interest owed on whatever amount you did not pay before the deadline

Can’t pay your tax bill? You have some options:

  • Credit card payments
  • Installment agreements
  • “Offers in compromise”

What to do if you are late filing taxes or have complicated taxes contact GYL CPAs and Advisors. Our personal tax accountants keep current on new tax laws and legislation, our focus is to ensure you keep as much as possible. Not only will you avoid costly deadline penalties but we will prepare your taxes accordingly to maximize your opportunities and limit your liabilities.