June 17, 2024 is a crucial date for many taxpayers in the United States. Are you wondering why this date is so important? Here we explain everything you need to know about who must meet this date and what happens if they don’t.
The tax season usually starts at the end of January. During this period, the Internal Revenue Service (IRS) begins accepting and processing tax returns for the previous fiscal year. The exact date may vary every year, but it is usually around January 24th.
The deadline for filing your tax return is usually April 15th. If this date falls on a weekend or holiday, the deadline is extended to the next business day. For example, in 2024, the deadline was April 15. However, there are several categories of taxpayers that have a different date: June 17th.
Who Has to Meet This Date? The IRS Explains the Deadline
Taxpayers Living Abroad
First, let’s talk about US citizens and permanent residents living outside the United States. Normally, these taxpayers have an automatic extension until June 15 to file their tax return for the previous year. However, due to the fact that June 15, 2024 falls on a Saturday, the deadline is extended to the next business day, i.e. June 17, 2024.
People with Income from Self-employment
If you are self-employed, you already know that you must pay quarterly estimated taxes. June 17 is the second payment deadline for these estimated taxes for the 2024 fiscal year. This group includes freelancers, independent contractors, and small business owners who do not have taxes automatically withheld from their income.
Taxpayers Who Requested a Time Extension
Those who applied for an extension to file their previous year’s tax return and live in areas affected by natural disasters should also be vigilant. In some cases, the IRS offers additional extensions for these taxpayers, but it is vital to be aware of the specific dates and comply with them.
What happens if you miss the Date? Fines and Penalties
Failure to meet the June 17 deadline may result in various penalties. First, the IRS can impose a late filing penalty, which is usually 5% of the tax due for each month or fraction of a month that the return is overdue, up to a maximum of 25%.
In addition to the penalties, you will also be charged interest on any tax not paid on time. Interest is calculated from the original due date of the return (April 15th) until the date you make the full payment.
For taxpayers living abroad, not filing the return on time could result in the loss of benefits such as the exclusion of income earned abroad. This benefit allows you to exclude up to a certain amount of your foreign income from taxable income, but you must file your return on time to qualify.
Those who live in areas affected by natural disasters and have received an additional extension should be especially careful. Failure to comply with the extended dates may result in the loss of this extension and the imposition of penalties and interest.
File Your Return on Time and Avoid Problems
The best way to avoid problems with the IRS is to make sure you file your tax return on time. Even if you can’t pay the full amount owed, it’s important to file the return before the deadline to minimize penalties.
Use digital tools such as calendars and reminders so that you don’t forget important dates. Having alerts set up on your phone or computer can be a great help in keeping on top of your tax obligations.
Consult a professional, and in the meantime, pay what you can
If you have doubts or your tax situation is complex, consider consulting an accountant or tax advisor. They can help you make sure you’re meeting all of your obligations and avoid potential problems with the IRS.
If you can’t pay the full amount of the taxes owed, pay what you can. The IRS allows payment agreements that can help you meet your obligations without incurring excessive penalties.
