Paying taxes when they are due is good. It is one of the most important indicators of a country’s economic stability. If people fail to pay their taxes, it is not only your reputation or financial situation suffers, the governments do too. And when governments fail to make progress and invest in imperative sectors they can’t alone be blamed. So it wouldn’t be wrong to say that the revenue governments earn from taxes is directly proportional to a country’s economic growth in global standings. This makes paying taxes even more important. Yet, whenever someone mentions tax or tax date of 2016, many questions are raised in our head, especially in the minds of those filing for their taxes the very first time. The most common of all is when are taxes due 2016?
If you are one of those people who have already filed taxes before but are still in a tight-spot at the start of 2016 and have the same when are taxes due 2016 question on your mind, you shouldn’t feel embarrassed or ashamed to the least. Filing for taxes isn’t easy in fact it is the most hardest of tasks one has to do every year for even the most experienced tax payer. You are not in this alone. It is one of the most daunting tasks to be fair. But with so much happening in the world right now, it isn’t uncommon to get distracted and forget when are taxes due 2016?
Whether it is your first time paying taxes or you already have a grip on it, the most important thing to keep in mind is that in order to answer the when are taxes due 2016 question will only make sense to you if you stop panicking and relax. If this is your first time filing taxes, before we answer when are taxes due 2016, you need to understand the concept of taxes of taxes in the first place.
Concept of Tax Filing
Whenever someone mentions filing taxes, they are usually referring to income tax returns since they are the most common of all taxes filed. You need to keep in mind that all types of tax returns serve different purposes. So when you are wondering when are taxes due 2016, you actually need to be asking what different types of taxes are there and which is of most concern to you. Before you jump to paying your due taxes in 2016, you need to comprehend the various kinds of IRS forms and how each of them is used to file taxes. If you don’t know of it already, you are not the only one. Majority of the population is unaware and must know of the difference. To ease your difficulty, we are helping you identify what each IRS tax form means and how can they be used.
- Form W-4P: It is the Withholding Certificate for Pension or Annuity Payments to determine the correct amount of deferral income tax.
- Form W-4: This is the Employee’s Withholding Allowance Certificate which is filed prior to starting employment.
- Form W-2: For salaried employees.
- Form NR: For the income tax return of the non residents of the US.
- Form 8962: It calculates the amount of credit you receive.
- Form 1099-MISC: For freelance or contact workers who receive at least $600 during the tax year.
- Form 1098: Also known as Mortgage Interest Statement, it is for homeowners who pay mortgage who receive at least $600 mortgage during the year.
- Form 1040NR-EZ: For certain US non resident aliens with no dependents.
- Form 1040EZ: Used by married or single individuals with no dependents.
- Form 1040: For the US individuals for income tax returns.
When Are Taxes Due in 2016 & What is Tax Day?
Before you know when are taxes due 2016, familiarize yourself as to what does Tax Day actually mean. Tax day is an unofficial term for the day when all taxes that are due on individuals have to be paid to the federal government. All those in the United States of America know that the tax day falls on April 15th every year. But for all those who are living outside America and Puerto Rico but filing for taxes in the states, Tax day falls on June 15. This two month extension to file for tax returns is granted by IRS Publication 54.
Tax Day for Tax Season 2016 is April 18, 2016
All those who have been wondering when are taxes due 2016, must know that IRS has officially announced the opening and closing deadline for the tax season 2016. All those who have tax returns due this year must mark their calendars with a big red marker on April 18th 2016. All those who want to avoid the stress and burden involved in paying fines and penalties must have their taxes filed latest by this year’s April 18th. If you think about it now, the date isn’t as far. So it is time you start gathering all the essential and appropriate documents for 2016’s tax filing. All those who have been filing their taxes for several years now must be wondering why the date has been set to April 18th instead of April 15th and in the following paragraphs we have explained why.
Why Is Tax Day In 2016 Delayed For 3 Days?
As per customs, tax filing season usually ends on April 15th of ever year. But this time in 2016, the end of tax season has been shifted three days later. So when wondering when are taxes due 2016, it is on April 18th 2016. This may come as good news to all those dawdlers who fail to pay their taxes on time since they will be getting three additional days to file their tax returns.
A much needed gratitude must be shown to Washington D.C. for the delayed deadline. Because the country will be celebrating Emancipation Day on April 15th 2016 this year, the day will itself be celebrated as a federal holiday as a result of which all federal offices will remain close including the IRS.
This may come as a surprise, since every year Emancipation Day is celebrated n April 16th. The day is celebrated to pay tribute to the freedom of Washington D. C. It is the same day when the President Abraham Lincoln signed document sending the slavery in the country forever. But because April 16th in 2016 is coming on a Saturday which is itself a holiday, it will be celebrated on Friday, April 15th this year. So the last reminder for when are taxes due 2016 is April 18th 2016. But just because the due date to file for tax return has been shifted three days later, it should not make all taxpayers to procrastinate. They must have themselves prepared on before the Tax Day arrives.
Important Tax Deadlines to Remember
Although the closing date for this year’s tax returns filing is April 18th, 2016, there are some additional deadlines known as expended dates that all tax payers must acquaint themselves with. They will come in handy when they are wondering when are taxes due 2016 and know that they will not be able to file for tax returns on that particular day. So all those who are trying to find the answer to the when are taxes due 2016 will find these extended dates of great importance.
Individual Tax Returns
All individuals will be asked to fill forms 1040NR, 1040, 1040EZ, or 1040A when the tax season opens on Tuesday, January 19th 2016. The first deadline for all tax payers will be Monday April 18th 2016. All those residing in Massachusetts or Maine can file for tax returns latest by Tuesday, April 19th, 2016. Yes, these are many dates to remember and recall for later, don’t worry if you miss it out. Each year IRS also announces extended deadline and the deadline for this year is Monday, October 17th 2016.
Partnerships Tax Returns
All those tax payers who have formed partnerships will have to fill in the form 1065 before Tuesday 19th 2016. The tax day or tax dates remains the same for them as announced by the IRS, which means they will have to pay their taxes on April 18th, 2016. All those who have partnerships in Maine or Massachusetts can file for income tax returns on Tuesday April 19th, 2016. Also, there is good news for all those business owners who are so engulfed in their business and work schedules since IRS has announced an extended deadline of September 15th, 2016 for all partnership businesses.
Trust and Estate Tax Returns
Tax payers belonging to trust and estate industries must file for tax returns after filling form 1041 on Tuesday, January 19, 2016. The deadline for tax payers living in Massachusetts and Maine is Tuesday, April 19, 2016 whereas the extended tax deadline is Thursday, September 15, 2016.
Corporation Income Tax Returns
All tax payers who belong to a corporation or firm will be asked to file income tax return using forms 1120 and 1120-S on Tuesday January 19th 2016. One thing that must be kept in minds of all corporation tax payers is that their tax deadline to file for income tax is different than standard deadline. Their first deadline they must know of is on Tuesday, March 15th, 2016. The same is the tax filing date for all those living in Maine and Massachusetts.
Foreign Bank Account Tax Returns
All those tax payers who have foreign accounts opened are asked to file for their income tax returns latest by Tuesday, January 19th 2016. But you may wonder the answer to when are taxes due 2016 was April 18th, 2016, then why their time to pay income tax returns is different? According to IRS, tax payers with living abroad or have opened foreign accounts are granted a two-month extension period. However, the last day to file for income tax returns is just around the corner on Thursday, January 30th, 2016. Because it is so near, tax payers must prepare themselves fast to file for tax returns. Although they are given the leverage of the two-month extension period, there are unfortunately no deadlines for them which mean if they don’t pay their taxes by the midnight of June 15th 2016, they will have to face severe consequences.
If you still have the same when are taxes due 2016 on your mind and feel that the extended dates are the best way to go about paying taxes, remember that extended deadlines come with limitations. Tax payers can only file electronically and the IRS will not accept paper-filed tax returns. So if you don’t understand the tax filing deadlines, there is no point having to wait till the last day. Begin preparing tax filing now.
Once you have successfully answered the when are taxes due 2016 question and have also habituated yourself with the extended dates, begin preparing yourself for the upcoming Tax Day. However, if you still fail to file for tax returns, there will be penalties imposed on you. Read on to see where not paying your taxes on time will land you.
What If I Fail To Pay My Taxes On April 18th, 2016?
Don’t even let this thought cross your mind that you will not pay your taxes. The consequences of not being able to pay the taxes on the due and extended dates are severe and pretty shocking. Although we and guarantee, that all of these will happen to you if you are unable to pay your taxes, we can’t bet on it.
Some possible consequences include:
Pay a penalty fee: There are two possibilities. Either you failed to pay or taxes or you didn’t file for one. If you failed to pay, you will be charged a penalty fee determined by the amount you owe but if you failed to file in the first place, you will be asked to pay a penalty fee of 5% for up to five months.
Pay interest: You will be asked to pay additional interest of about 1% – 4% plus 3% (which makes it a total of 4% – 6%) as per determined by the federal short-term rate.
Get notices from the IRS: Mail from the IRS is the last thing you want. But if you don’t file or pay your taxes, this is exactly what you will get. A constant reminder that you have defaulted.
Forfeit your refund: It is as simple as it can get. You owe IRS money. You can’t expect them to hand you over more unless you pay the amount you owe them first.
Hurt your credit report: An unpaid debt is an unpaid debt m, be it to the government or to anyone else. The worst part, it will show on your credit report. So if you fail to pay your taxes, your credit report will not look as good as you might have planned in the beginning of this year. So just a quick reminder, when are taxes due 2016? It’s on April 18th 2016.
Property seized: You may have often heard the word lien which means a claim to your property, IRS Publication 594 can pursue levy which actually means taking your property if you fail to pay your taxes. This may include your vehicle, house and even your income or bank accounts.
Get a summons: If the IRS has difficulty sorting out your due taxes, you could receive a summons. Summons is a legal requirement in which the person is asked to appear, meet with an IRS officer, bring along requisite documentations and records and maybe even asked to testify. This obviously isn’t something worth looking forwards to.
Go to jail: Although it is a bit last resort, it could happen. If the government knows that you have deliberately failed or filed for fraudulent returns they could take it as a means to default the government.
Deal with the IRS for 10 years: If you are unable to pay your taxes on time and are a negligent tax payer, government has the tight to end your relationship with the IRS for a minimum of ten years.
However if you are not able to pay your taxes by April 18th 2016, it is not the end of the world. There is still hope for you. The first thing you need to be doing is inform the IRS immediately. Although what you have done isn’t something forgivable, the agency will surely show some kindness and leniency to someone who openly admits that they have been off-track and negligent. You may be thinking that it might be embarrassing but you will be better than the one whose litter box is piling with stacks of notices. Once you contact the IRS, you may be able to negotiate a reduction in the total money due or maybe formulate a payment plan. But it is still best that such a situation does arrive.
So stop wondering when are taxes due 2016 and get down to the depth of it, because if the dates passes and you are not able to pay the amount you owe, you already know how severe the penalties can be.