Tax day is upon us and many people wait until the last minute to file their income tax returns. Regardless of whether you have hired a CPA or prepared the returns yourself, you have enough to worry about. Before you file your tax returns, here are four last minute tax tips to remember: 1. Extensions: If you can’t file your tax return by April 18th, don’t panic! You can file an extension. But remember the extension ONLY gives you more time to file your tax return. You have to pay any taxes you owe by the due date. If your return is late you will have the following penalties/interest: a. Penalty – Failure to File; 5% of the unpaid tax, up to 25% b. Penalty – Failure to Pay; ½ of 1% of your unpaid tax c. Interest on the taxes due; the interest rate is adjusted every quarter
