Tax Alert: Key Information on October 16th, 2023 Deadlines
Extension Filing Deadline: October 16, 2023
For taxpayers who obtained an extension on their 2022 tax returns beyond the initial April 18th, 2023 deadline, please be informed that the final due date is October 16th, 2023. The typical October 15th deadline has been shifted due to it falling on a weekend this year, thereby automatically moving to the next business day.
Late Filing Implications
It's essential to file by the extended deadline to avoid late-filing penalties. Should the return remain unfiled past this date, penalties will accrue at 5% of the tax due for each month or part thereof, up to a cumulative maximum of 25%. For state return obligations, most states adhere to the same extended deadline of October 16th.
Pending K-1 Information
For those awaiting K-1 forms from partnerships, S-corporations, or trusts, be aware of their respective extended deadlines: September 15th for partnerships and S-corporations, and October 2nd for fiduciary returns. If these documents have not been received, it would be important to inquire.
Interest on Outstanding Balances
Beyond penalties, taxpayers should be cognizant of interest that continues to accrue on unpaid balances at a rate of .5% per month.
Submission of Additional Documentation
To ensure timely and accurate filing, if there's additional information that this office requires to finalize your return, kindly ensure its submission a minimum of one week prior to the October 16th deadline.
Other Key Deadlines on October 16th:
FBAR (FinCEN Form 114) Filings: Taxpayers with foreign financial accounts exceeding an aggregate value of $10,000 at any point in 2022 must electronically file with the Treasury Department.
SEP-IRA Contributions: The deadline for self-employed individuals to establish and contribute to a SEP-IRA for 2022 is also October 16th. However, contributions to traditional and Roth IRAs for 2022 had an earlier deadline of April 18, 2023.
Special Provisions for Disaster Victims
If you are located in a federally declared disaster area, be advised that the IRS often grants additional time for filing and payment obligations. For specifics on extended deadlines in such circumstances, please consult our office or the IRS website.
To ensure compliance and mitigate penalties, it is recommended to address all tax obligations well in advance of the October 16th deadline. Our office remains available for any questions or clarifications you may require.
The information shared here is solely for informational purposes and should not be interpreted as legal, tax, accounting, or valuation guidance. It's not intended as a comprehensive review of specific issues, nor as a replacement for professional advice. Before taking action based on this content, please consult with the appropriate expert tailored to your specific situation. If a detailed written analysis is needed, our team stands ready to assist. Any such in-depth consultation would be subject to a separate engagement letter that defines the specifics and boundaries of the provided services.
