The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in a federally declared disaster area when at least one area qualifies for FEMA's Individual Assistance program. Citizens and Resident Aliens Abroad, on IRS.gov. taxpayers abroad, see Publication 54, Tax Guide for U.S. For more information about the special tax rules for U.S. The interest rate rises to 5% on July 1, 2022. The interest rate is currently 4% per year, compounded daily. Though taxpayers abroad get more time to pay without penalty for late payment, interest is due on any unpaid tax from this year's April 18 deadline. Affected taxpayers should attach a statement to their return explaining which of these situations apply. and Puerto Rico who do not qualify for the longer combat zone extension. The special June 15 deadline also applies to members of the military on duty outside the U.S. and Puerto Rico have until June 15, 2022, to file their 2021 tax returns and pay any tax due. citizens and resident aliens who live and work outside the U.S. Details, including examples illustrating how these extensions are calculated, are in the Extensions of Deadlines section in Publication 3. Various circumstances affect the exact length of the extension available to taxpayers. A complete list of designated combat zone localities can be found in Publication 3, Armed Forces' Tax Guide, available on IRS.gov.Ĭombat zone extensions also give affected taxpayers more time for a variety of other tax-related actions, including contributing to an IRA. Military service members and eligible support personnel serving in a combat zone have at least 180 days after they leave the combat zone to file their tax returns and pay any tax due. and those living in declared disaster areas. These special deadlines affect penalty and interest calculations for those who qualify, such as members of the military serving in combat zones, taxpayers living outside the U.S. Some taxpayers get more time to file, even if they didn't request an extension. Instead, the IRS will bill them for any amount due. The taxpayer need not figure any of these charges. In addition, the separate late-payment penalty and interest will stop accruing as soon as the tax is paid. The late-filing penalty will stop accruing once the taxpayer files. Under the normal calculation, this penalty is 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%. If they owe more than $435, then the minimum penalty will be at least $435. This means that the penalty will equal the tax due if the taxpayer owes $435 or less. By law, If the return is more than 60 days late, the minimum penalty is either $435 or 100 percent of the unpaid tax, whichever is less. Those who miss the June 14 cutoff will normally face a minimum late-filing penalty, also known as a failure-to-file penalty. Several other electronic payment options are also available. The fastest and easiest way to do that is with IRS Direct Pay, a free service available only on IRS.gov. In addition, taxpayers can also limit late-payment penalties and interest charges by paying their tax electronically. For that reason, the IRS urges everyone to file electronically by June 14. This means that a return mailed on that date will not qualify. To avoid the larger penalty, the IRS must receive the return by June 14. JWASHINGTON - The Internal Revenue Service has advised taxpayers who missed the April tax deadline that they can usually avoid a larger penalty by filing their 2021 federal income tax return and paying any tax due by Tuesday, June 14.
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