Jackson Hewitt Tax Pros Offer Helpful Tips to Late Filers

, /PRNewswire/ — According to latest data released by the IRS on Friday, April 21, 2023, more than five million taxpayers didn’t file their federal income taxes on time. The tax experts at Jackson Hewitt Tax Services are reminding taxpayers that missed the April 18 Tax Day deadline to file their 2022 tax returns as soon as possible and schedule an appointment with a Tax Pro at available Jackson Hewitt offices nationwide.

“If you missed the tax deadline or if you didn’t file for an extension, remember not to panic. An important first step is to get your documents organized and create a plan. Then, once you’re ready, get your taxes filed as soon as you can,” said Mark Steber, Chief Tax Information Officer at Jackson Hewitt. “Delaying the process can create many issues for the taxpayer and can worsen the longer you wait. But the good news is many tax professionals want to help, and there are various options available not only at Jackson Hewitt, but with the IRS.”

Taxpayers should be aware that missing the federal deadline means they could face two major penalties from the IRS: failure to file and failure to pay. Furthermore, the IRS assesses penalties and interest on the outstanding taxes until they are paid in full.

  • Failure to file. The penalty for not filing a return or an extension is 5 percent of unpaid taxes each month, not to exceed 25 percent.
  • Failure to pay. The IRS can also assess a failure-to-pay penalty if at least 90 percent of the expected taxes due are not paid. This penalty starts at 0.5 percent of unpaid taxes each month, not to exceed 25 percent.

In addition to federal penalties, taxpayers who live in a state with required state income taxes might face additional penalties from the state when filing late. Some states assess a late filing penalty, even when there is a refund.

The experts at Jackson Hewitt offer taxpayers who haven’t completed their 2022 federal income tax return and missed the deadline five tips:

  1. File the 2022 income tax return as soon as possible – federal and state. Not only will filing the late tax return stop penalties and interest from growing, but it will ease stress from having to continue to worry about not being compliant.
  2. File electronically. One major reason the IRS has had a backlog the last few years is due to filers who filed their tax return on paper and sent it to the IRS through the mail. Additionally, e-filing is faster, more accurate, secure, and a confirmation of receipt is given quickly.
  3. If taxpayers are due a refund, have the refund money electronically deposited into a bank account and opt out of receiving a paper check. Like the benefits of e-filing a tax return, it’s also a faster, safer, and easier option to receive a refund electronically instead of receiving it in the mail.
  4. If taxpayers owe a balance due, pay as much as possible or apply online for an Installment Agreement (a payment plan). Beginning payment to the IRS minimizes the penalties on unpaid amounts and reduces any interest charged by the IRS.
  5. Work with a Tax Pro, don’t file a tax return alone. Tax Pros understand the tax code and therefore can help taxpayers avoid mistakes, find credits and determine eligible deductions. In addition, it saves time from doing a task the IRS reports can take the average taxpayer up to 20 hours to complete.

Lastly, another important option for many taxpayers that missed the deadline is the First-Time Abatement Penalty Waiver (FTA). The FTA can be obtained for a failure-to-file, failure-to-pay, or failure-to-deposit penalty. Only applicable for a single tax period, qualifying taxpayers may claim an FTA if there hasn’t been any other assessed or significant penalties within the past three years, as well as being in compliance with all filing and payment requirements.

For more information on how to file a late tax return, visit Jackson Hewitt. To schedule an appointment with a Jackson Hewitt office that still has extended and flexible hours, visit jacksonhewitt.com/officelocator and find a Tax Pro at a local Jackson Hewitt office nearby.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. is an innovator in the tax industry, with a mission to provide its hard-working clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead and stands behind its work with its Maximum Refund Guarantee and Lifetime Accuracy Guarantee® (restrictions apply, see Jackson Hewitt’s website for more details). Jackson Hewitt has more than 5,600 franchise and company-owned locations nationwide, including 2,700 in Walmart stores as well as online tax prep services, making it easy and convenient for clients to file their taxes. For more information about products, services, and offers, or to locate a Jackson Hewitt office, visit www.jacksonhewitt.com or call 1 (800) 234-1040.

SOURCE Jackson Hewitt Tax Service Inc.