Yes, Three More Days To Procrastinate On Taxes.
I remember my younger days when I would finish my taxes on April 15th and go to the Van Nuys regional post office on Sherman Way.
The lines were long. You did not even have to get out of your car. Valet service. If you got out of your car, there were food vendors, music and much more. Miss the carnival now that we use electronics for everything.
Why The Three Days?
- the 15th is a Saturday;
- the 16th is a Sunday;
- the 17th is a holiday in the District of Columbia.
Hence, the 18th.
What Is The Holiday?
On that date, many years ago, Abraham Lincoln signed the Compensated Emancipation Act of 1862 which freed over 3,000 slaves in the DC area.
What If You Are Not Ready To File Your Taxes?
No problem, you can file for a six month extension which is granted automatically,
Where do you go to do this? Guess?
Why File An Extension?
The penalty for not filing on time is 5% of your liability per MONTH. 60% plus per year, that is above usury.
There Is An Interesting Quote From Turbotax.
“You are granted an extension to file. You are not granted an extension for paying the money due. If there is money due and you file for an extension, start thinking penalties and interest if you do not pay up then.”
Final Opinion Whether Solicited Or Not;
At this time of the year, I hear people say that, “Hooray, I got a big refund.” That means to me, “You lent the government money over the past year at a rate of interest of 0%, and then they get a short type high interest loan from their tax expert to get their money back faster.”
If you know, for example, that your corporation will not have any income this year, you can get an extension on that from the March 15th pay time.
As the penalty is a percentage against your liability of nothing, it is not a big problem, but get the extension anyways. Those are two different things.
See you at the post office on October 18th.