Federal tax extension deadline is here
Patriotic Millionaires chairman Morris Pearl joins FOX Business to talk about 2020 Democrats’ wealth tax plans and what a fair tax plan would look like according to him.
Today is the final day to file your federal tax extension.
An estimated 15 million people this year requested an extension when it came time to file their taxes on April 15.
"There were a lot more extensions this year really due to the complexity of the Tax Cuts and Jobs Act,"”Bill Smith, managing director for CBIZ MHM’s National Tax Office, told USA Today. "In October, the key is to make sure you have your documents together. If you are missing anything, you will have to get the documents very quickly – you are running out of time."
Directly above view of unrecognizable curly-haired woman in sweater lying on carpet at home and filling tax form to get returns
For people who don't file their taxes by the extension today, the penalties can be severe. The IRS can issue a 5% "failure to file" penalty per month on the taxes they owe for five months, up to 25%.
There is also the possibility of an underpayment penalty -- for those who either didn't pay 90% of what they owed in the spring or who misstated what they would owe at the extension deadline. Here, the IRS can fine people 0.5% per month on the taxes they owe, again, up to 25%.
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"If you overpaid, you'll get it back when we file the return," Smith said to USA Today. "That's not the worst thing – the worst thing is there are people right now putting off filing or getting the info they need."