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Published: Tue, April 18, 2017
Economy | By Melissa Porter

Almost 40 million people have yet to file taxes this year

Almost 40 million people have yet to file taxes this year

The average refund is $2,851.

If you are expecting a refund, you will not receive it until you have filed your tax return. "Taxpayers must pay at least 90 percent of their 2016 tax bill by April 18 or they will face late-payment penalties and interest", said Pickering.

If you cannot file by Tuesday's deadline you can apply for an extension by filling out Form 4868.

The Internal Revenue Service is giving taxpayers three extra days to file tax forms this year, because the April 15 fell on a weekend and Monday is Emancipation Day at the Capitol.

The best thing you can do if you know you are going to miss the deadline?

Taxpayers who are not ready to file by the deadline should request an extension of time to file, according to an IRS news release.

The BIR is targeting tax collection of P1.83 trillion (US$36.6 billion) in 2017, with 60 percent of this coming from large corporate taxpayers.

Find more information at https://www.irs.gov/individuals/electronic-filing-pin-request.

President Duterte, in Puerto Princesa earlier this month, said the company did not pay the proper taxes during the Aquino administration, and its tax liabilities were "fixed" by former BIR chief Kim Henares. This way, if you are due a refund, you won't have to wait longer than necessary to get your hands on your money. In June 2016, the IRS (without any announcement) consolidated all responsibility for processing Forms 4422 (Application for Certificate Discharging Property Subject to Estate Tax Lien) within the Estate Tax Lien Group of the Advisory department of the IRS.

"We're still negotiating, but if you ask me, I hope they'll come and see me again". The general process to request a tax deadline extension is the same whether you file taxes online or by mail. "Still, filing an extension will save them the larger failure-to-file penalty."The monthly penalty for not paying in full is 0.5 percent of the unpaid balance per month with a maximum of 25 percent". Business-related items are tax deductible, of course, but so are odd items like swimming pools and hot tubs, the cost of which can be deducted if they are doctor-prescribed (in one adviser's case, her client's child needed swim therapy).

When you save in a traditional 401 (k) or IRA, you don't have to pay taxes on the money you put into the account, but you do have to pay taxes on the money you take out. "The IRS has options if you can't pay all the tax on time, like installment agreements", he said. If you have enough income from other (taxable) sources, you will exceed the Social Security taxation threshold and will be required to pay income taxes on some of your Social Security benefits. "And make sure you've got all your documents together". Some people in our area have reported fallen victim to the scam, which claims to be someone from the IRS calling you and demanding payment over the phone.

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