These types of claims and
commercials have become so prevalent that both the IRS and
the Consumer Financial Protection Bureau are considering
oversight of this portion of the financial services
industry.
Concerns have developed based
on requirements of large up front fees and frequent
failures to settle debts based on promised terms. BEWARE!!
You will fill out a Form W-4
when you begin a new job. Additionally, each time you
experience a life change such as a new address, marriage or
a babys birth, you need to update your W-4
promptly.
Do not wait until the end of
the year as you may experience an unpleasant surprise in how
much you owe in taxes. If you have problems with the
form your HR staff can help you. You can also contact your
tax accountant for assistance.
Any portion of the federal tax
due and unpaid as of the payment due date and the return is
filed after the filing date is subject to a late filing
penalty.
The penalty is 5% for each
month or part of a month that the tax return is late, up to
a maximum penalty of 25%.
If you file your return more
than 60 days after the due date or extended due date, the
minimum penalty is the smaller of $135 or 100% of the unpaid
tax.
A tax extension is a way to
ask the Internal Revenue Service for more time to file a
tax return. The deadline to file your tax return is
normally April 15th. By filing Form 4868
you can extend the deadline by six months to October 15th.
However, the extension of
time to file is not an extension of time to pay. The
payment for your taxes is still due on April 15th.
