With 50 million Americans expected to file their taxes this final week of the tax filing season, Liberty Tax expects that the late crowd is procrastinating because they owe. For the many procrastinators who owe, there are options to avoid additional penalty and interest charges. Liberty Tax Service has extended its operating hours for last minute filers. Some locations are hosting an “Up All Night” Slumber Party with twenty-four hour service April 13 7 a.m. through April 15 at midnight.
“It’s best to file on time and pay as much as possible of your tax liability by April 15 to avoid the failure-to-file penalty,” said John Hewitt, CEO of Liberty Tax Service.
The failure-to-file penalty is often more expensive than the failure-to-pay penalty. It’s usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. Taxpayers who don’t file and pay by April 15 could face both a failure to file and a failure to pay penalty. This year, the IRS has expanded the offer-in-compromise program that allows a settlement of the taxpayer’s tax liability for less than the full amount owed. Taxpayers can opt to file an extension, request to pay tax liability in installments, or pay by credit card.