Cooler evenings are settling in, and pumpkin spiced lattes are back. Baseball fans anticipate the crack of the bat launching MLB playoffs, and last-minute taxpayers become cognizant the final deadline for Form 1040 is looming. Hello Autumn, Lynn Spencer here. The final due date to file 2024 federal and state income taxes is Wednesday, October 15th. If tax is owed, it was due on May 1st. Unpaid taxes will continue to accrue interest and penalties until fully paid. The current IRS interest rate is 7.0% per year and compounds daily. Georgia income taxes owed are higher – 10.50% and compounds monthly. Both the IRS and GA DOR add a late payment fee, “failure to pay” of 0.5% each month. Late filing or “Failure to File” fees are also the same with the IRS and the state at 5% each month beginning October 16th, with a 25% cap on the total amount due. – OUCH!
Not every taxpayer has the cash to pay their taxes by October 15th; our advice is to file the returns by this extended due date to stop the very steep “Failure to File” 5% per month penalty. Expect a letter (CP-14) to arrive in 4-6 weeks posting the amount due. At that time, owing taxpayers can set up an installment agreement directly with the government, which also reduces the “failure to pay” penalty rate.
Killingsworth Spencer is here to help get taxpayers in compliance. Our team is growing, and we are available to serve new clients – even to meet the 10/15 tax deadline.
Killingsworth Spencer is here to help our clients fully understand their options to save taxes today and in the future. We have CPAs, Enrolled Agents, Bookkeepers, and payroll specialists on staff to help our clients with accounting and tax-related matters. For more information or to schedule an appointment, please call us at 770-552-8286. Visit us at www.killingsworthspencerllc.com
Disclaimer: This post is for general information only and should not be taken as legal or financial advice.