First some important reminders for all Chattanooga taxpayers, then I have a bunch of questions to which I’d like you to respond…
Depending on when you read this, the October 15th tax return extension deadline (for families and individuals) is either VERY close, or just recently passed.
Therefore … a word on filing — even if you don’t want to:
Filing a tax return late (without reasonable cause) results in a 5% late FILING penalty (on whatever it is that you owe — and the IRS will figure it for you if you don’t), and an additional 5% for every month you wait to file.
PLUS there is an additional .5% late PAYMENT penalty on whatever it is you owe (assuming you also didn’t make the payments). NOTE: this is ON TOP of late filing penalties.
Then (yikes), interest accrues on both the late tax filing penalties AND the late payment penalties.
That’s a lot of penalty. And at least the first one is completely avoidable.
If you can’t pay the tax due on October 15, still file … and talk to us about helping you set up an installment agreement or working out an offer in compromise to cover what you owe.
This might be especially painful for those who had a great 2019 (from an income standpoint) and didn’t pay their estimated taxes — and then have had a rough 2020.
If this is you, we really can help: https://login.atomanager.com/ATOM_UST/default.aspx?redirect=webinfoNewClientAppointment.aspx
Don’t avoid the problems. It’s much easier to face them head on when you have someone in your corner (ahem).
And, of course, if you already have our help, we’re on the case.
This information above might be a great thing for you to share on your social media … many Hamilton County people don’t know these penalty realities. Please do feel free to send people our way, if you do.
John and Wanda King
“CRISIS Action Plan” for my Chattanooga tax clients — which is still relevant today:
1) Don’t marinate in other people’s panic. Be mindful of your social media consumption.
2) Continue to stay financially and logistically prepared for worsening situations.
3) Make sure you have some ready, liquid assets, if you are able. (I.e., cash in the bank, and in hand.)
4) Set aside plans for any big spending until the dust settles — but especially look out for your small business owner friends and vendors.