By Rommel Conclara, ABS-CBN North America Bureau
April 15, 2014
DALY CITY, Calif. – Tonight, April 15, is the U.S. deadline to file individual tax returns.
If you didn’t file by today it may cost you a late payment penalty, late filing penalty, and more plus interest.
Tax expert Daniel Raval explains what you need to do.
“There’s a way so that you don’t have to pay late filing penalty by filing for an extension,” Raval said. “An extension is a simple form. It’s called 4868. They complete it. They send it electronically or mail it by the 15th and they extend their deadline to submit the tax return by Oct. 15, so that’s six months.”
After more than 12 years of preparing taxes, Raval says that his office becomes the busiest in February and especially the first two weeks of April.
Many people rush and hope to get their taxes done in time.
“The reason, I think, is because of procrastination,” Raval said. “We always wait until the last minute and here we come. The other reason is, one, they haven’t received some of the documents. There are documents called K-1. Those are partnership incomes and it’s normally one of the things that are late. Sometimes W-2s are not received because people move from one place to another and they didn’t get the W-2. And there are people who are just afraid to do their taxes or because they owe taxes and they want to delay and delay and pay last minute.”
Even though today is the official last day to file your taxes, Raval and his team have some tips for next tax season.
“If you don’t pay your taxes now then it builds up your liabilities,” he said. “Your taxes owed, the penalties add up. Self-employed individuals, list your income. I know it’s time consuming but in the end it’s going to help them out. Charitable contributions, nowadays, is when you pay a thousand dollar check to a charitable organization and normally that one thousand dollar check can suffice as a proof, now it’s not. Now you need a backup from the charitable institution.”
If you’ve never collected a refund owed to you after three years, the IRS can reclaim your refund. According to the IRS, Americans left a total of $760 million in unclaimed tax refunds in 2011.
After tomorrow those refunds can no longer be claimed.