It is important to know when are taxes due in 2018 so that the businesses and individuals can make their preparation for the important day. It is important to keep in mind that missing the tax filing deadline can result in serious penalties by the IRS. If you wish to avoid these penalties, you need to be aware of when are taxes due in 2018. It is also important to know that the tax date is not the same each year. Thus, if you were thinking it will be April 15th in 2018, you are not right. There are many factors that are taken into account by the federal government and the IRS before finalizing the date for income taxes returns. Similar was the case when they were deciding when are taxes due in 2018.
Continue reading to know when are taxes due in 2018 and start making preparations so that there is nothing missed at the last moment that may cost you a lot of money in penalties.
f you want to avoid tax penalties, there are two reliable tactics:
- Have a reliable and a stable accounting system that goes round the year
- Being on time when it comes to the payment of your taxes
The IRS levies penalties on the individuals and businesses who fail to file their income tax returns on time. If you fail to file your income tax prior to the deadline, you will have to pay more than the original amount. Therefore, it is necessary as an individual and a business to make sure they do not miss the tax deadline and also ensure that all the calculations are done and forms are filled prior to the deadline so that any last minute hassles can be avoided.
Tax Day in the United States of America
Many states of the US mark Tax Day as the deadline for filing their income taxes and its details to the IRS. Most of the time, the date is on or around the 15th of April, but it may be changed or extended to accommodate any holidays falling on this date or due to some extreme weather conditions.
What do People Do on the Tax Day?
The Tax Day is marked as an important day in the calendar of the US. A large portion of individuals and businesses have to inform about their income received in the past fiscal year to the Internal Revenue Service.
While most of the people and businesses need to file their income tax returns before the deadline, there are some groups who do not have to file their income tax returns unless they qualify or opt for certain income subsidies. These include the low income families, veterans and pensioners. All other individuals and businesses need to pay their income tax before the deadline passes each year. For some people, filing the income tax is a great hassle, while some of them are of the view that they should not have to pay the income tax at all.
Anyhow, regardless of the opinions of the people, filing your income tax returns in time is necessary, otherwise, the IRS will put penalties on you and you will ultimately have to pay more money to the federal government in terms of the income tax and the penalties. Income tax in the United States can be filed electronically or through paper. Most of the people these days prefer using online mediums for the payment of their income taxes as it is a much convenient way than to file it through paper. It also reduces the risk of making mistakes in the important information and also eliminates the risk of losing the documents in the post or the chances of the IRS receiving them after the deadline has passed.
The Tax Day in the US is not a public holiday. Post offices, schools, shops and all other organizations and businesses remain open and work as usual days. Public transport is also available just as the case is with normal days and there is no extra congestions expected on the highways as well. It is just another day but since it is the deadline for filing the income tax returns, everybody is on their toes making sure the deadline is not missed.
Income tax was introduced in the United States in the year 1861. The rate levied on the incomes over $800 per year were levied a rate of 3%. The revenue generated from the income tax returns was to be used to help the Civil War effort in America. However, the income tax was seen an unconstitutional measure and was repealed in the year 1872. Later, under the Revenue Act of 1894, the idea of income tax was introduced again but the legal status of the income tax and return of it was still not clear. When the 16th Amendment was passed on the Constitution of the United States, in 1913, the modern tax system was introduced in the US which is still in use.
The details of the income tax that were levied in 1913 have however have undergone a number of changes and variations. The tax rates have varied. They were particularly high during the times of the First and the Second World War, as well as, during the period of Great Depression. The families and individuals who have very low levels of income do not have to pay income taxes to the government. Instead, they are given subsidy through the tax system currently functional in the United States.
The deadline for filing the income tax for the Tax Day of 1913 was fixed to be March 1. It was later moved to March 15 in the year 1918 and in 1955, the date was changed to April 15th. It has remained there since then. However, the date is changed in case April 15th falls on either Saturday or Sunday. It is also changed in case April 15th is a civil holiday, where it is moved to the next working day, as is the case with Patriot’s Day. However, not all the states may be given an extension, as was the case in 2007 where some states were granted an extension for filing their income tax returns due to the huge Nor’easter storm which disrupted the public life in some states. Emancipation Day in Washington is also another reason the deadline for filing income taxes may be extended.
When Are Taxes Due in 2018?
For the year 2018, here are the business tax deadlines for tax filings based on the different entity types.
|Original deadline for partnerships (Form 1065) and S Corporations (Form 1120S)||
|Original deadline for C Corporations (Form 1120) and individuals (Form 1040)||
|Original deadline for exempt organizations (Form 990)||
|Final deadline for partnerships and S Corporations (with extension)||
|Final deadline for C Corporations and individuals (with extension)||
Why is it not April 15th?
April 15th 2018 falls on Sunday. Monday the 16th will be observed as the Emancipation Day in Washington DC. The Emancipation Day refers to the April 16th of 1862, when Abraham Lincoln singed the law to end slavery. Thus, the date for filing taxes for the year 2018 gets shifted to the next working day, April 17th, 2018.
The IRS is at liberty to extend or postpone the tax deadlines for some taxpayers who have a business or are living in the places which are marked as the disaster area by the federal government. The deadlines are also extended for the taxpayers who are working or living abroad. Same is the case for the members of the military who are serving in some combat zones.
What to Prepare for the Tax Day?
Now that you know when are taxes due in 2018, it is time to make the necessary arrangement to ensure the deadline is not missed. Here is what you need to do.
1. Use a Payroll Tax Software
Do you know that as many as one-third of all companies face fines each year as they are not correctly handling and filing their income tax and payroll? The involvement of human element in payroll calculation usually leads to these issues as they are making use of employees who are using spreadsheets without taking the help of any third party. If you decide to invest in a good payroll software, you will be able to manage your taxes in the most professional and expert manner. This way, you will also be able to avoid any penalties to the IRS from the hard earned money.
2. Separate Your Business and Personal Finances
The best way to handle the incomes taxes is to keep a difference between your personal and business finances. Commingling the personal and business finances is one of the main mistakes committed by business owners. When they are intermingled, it becomes difficult to maintain the two accounts separately and ends up in disaster when the time of filing income taxes comes. The best thing to do is to have a separate bank and a separate credit card for your business finances. Organization of taxes will become easy this way. Also make sure you have all the important documents ready and at an arm’s length to show to the IRS in case you are subjected to an audit.
3. Keep a Track of Your Revenue and Expenses
You need to keep a perfect track of your revenue and expenses before the date when taxes are due in 2018. The best way to do that is to use a software that can help you generate important financial statements accurately and quickly. All you should be doing is updating the software with the latest information and it should be able to handle the rest. Once the financial statement are created to perfection, send them over to a tax professional to file your tax return or do it on your own if you are confident you will not make any mistakes.
4. Get Organized
If you have remained organized all year long, the tax period will not be difficult for you. It is important to remain organized with all the paper work and not leave it all for the last moment. The best things to do is to maintain records on a weekly and monthly basis. If you leave it all for the end of the year, chances are that many of the important information may have been lost which can lead to problems when it comes to reconciling.
The best way to make sure the tax return reaches the IRs before the final deadline is to use the internet for filing your income tax to the IRS. You can make use of one of the many software available in the market to e-file your tax return for free. Once the tax return is received by the IRS, you will receive a confirmation code. This is the best way to file your income tax returns as you don’t have to wait in uncertainty that whether or not your tax return you sent to the IRS by mail has been received yet or not. Sending an electronic tax mail is also much better if you are looking for a refund, as it is processed faster than the snail mail.
6. Don’t Get Late
Now that you know when are taxes due in 2018, it is important for you to make sure that you don’t get late with filing your tax returns. You will have to bear a number of penalties in case you fail to file the tax returns on time. Here are the penalties you will have to face in addition to the interest.
- Not filing in time: The penalty for not filing the tax returns on time has increased recently from $135 to $205
- Not paying on time: It is based on the amount of tax you are owed and it continues accruing until you pay it in full
Filing you income tax returns on time is necessary and important even if you do not have the money to pay the taxes on time. This will allow you to avoid the penalties that come with not filing the taxes at the right time. There are also a number of programs that offer relief to businesses when it comes to income taxes. You can have a look at these programs to know if you are eligible for them.
It is important to know when taxes are due in 2018 so that you can make necessary arrangements in time and avoid paying any extra money in penalties to the IRS. While filing taxes may be a grueling process as there are many things to take into account, however, if you have remained organized about your revenue and expenses for the year, you will be able to file the taxes easily.
If you are not sure and confident that you can handle the process of filing your income taxes on your own, you can always take help from a tax professional. This way, you will be able to avoid any mistakes that are common when it comes to filing the income tax returns. It is not very costly to take help from a tax professional. Hiring an experienced tax professional will ensure that all the minute details are taken care of and are handled the professional way. You will also be able to save money that you may have to pay in penalties otherwise in case you fail to file the tax properly or make a mistake in the process.