IRS April Tax Deadline: Story of a Broken Lamp
Think Back To Your Childhood…
I remind my clients that the IRS April tax deadline looks like this: the story of the broken lamp. Remember when you were a child, as you were playing, you accidentally knocked over the lamp. In your best attempt, you try to move the lamp so that the broken parts are not too visible. Perhaps you try to glue back some pieces to ensure that everything looks exactly as it was before. Ironically, mom walks in and she can immediately tell that something is different. That makes her take a closer look at all the curtains, blinds, throw pillows, side tables and lamps. She quickly realizes that something is different about the lamp and she sees the damage.
Jumping to conclusions, she assumes YOU are the guilty culprit. Without saying a word, she walks into the kitchen and looks directly at you. In that moment, do you confess to breaking the lamp or do you ignore the stare of accusation? If you confess now, what are the punishments going to be? If you decide to ignore her accusation, what will the punishment be later? Dealing with your IRS April tax deadline date works in the same way.
What does the IRS April tax deadline mean for you?
The IRS categorizes tax penalties as (a) failure to pay and (b) failure to file. And, they both have specific punishments associated with each action.
If you decide to tell the IRS that you are a failure to pay, meaning you can’t pay the amount you owe right now, your penalty will cost you ½ of 1% in the amount of taxes you owe. You have to confess that you broke the table lamp. If you opt to say nothing, the IRS will assume your guilt and deem your actions as failure-to-file. This category carries a far greater penalty. In fact, with failure-to-file, you’ll pay up to 10 times more in penalty fees. So, for the IRS April tax deadline, it is cost effective to own your part in “breaking the lamp”. It’s better to be a failure-to-pay rather than a failure-to-file.
Woodstock, GA – Accounting, Tax & Payroll CPA
We are a CPA in Woodstock GA that specializes in small businesses tax and accounting for local business in and around Marietta, Woodstock, Alpharetta, Roswell and Canton, GA. Contact Erica in our office to find out how we can help you.