Monday is tax deadline day for 2021

The tax man cometh. 

Monday is the deadline for filing federal taxes without incurring a penalty, unless you seek an extension. 

This past spring, the IRS pushed back its usual April 15 deadline by more than a month, saying it wanted to be understanding given the coronavirus pandemic. 

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic,” IRS Commissioner Chuck Rettig said in a statement at the time.

If people who owe federal taxes don’t pay on time, they could be hit with penalties and accrue interest. 

The IRS can charge you 5 percent of your unpaid taxes every month  for late filing, maxing out at 25 percent. If you file your taxes on time but fail to pay, the IRS will charge you 0.5 percent per month.

That’s on top of interest that builds daily, equal to the federal short-term rate plus 3 percent. For those not ready to pay, people can file for an extension, which pushes the deadline out to October 15. But you’ll still accumulate 0.5 percent in penalties each month unless you pay an estimated amount by Monday. 

To request an extension, taxpayers must submit the Form 4868, which can be submitted through your tax professional, tax software or using the Free File link on IRS.gov.

Some taxpayers will receive automatic extensions this year, such as those affected by the winter storms that hit Texas and other parts of the South in February. Residents of those states have until June 15 to file their taxes.

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