You Know Its the End of Tax Season When …..
Before I share today’s post, I just want to let everyone know my wife and I are headed to South Africa for a photo safari at the end of this month. We will be gone from April 22 to May 8. I believe with have Internet access at the lodge we are staying at but I have promised my wife to take a true vacation. Therefore, the postings over the next few weeks may be very spotty. Now for our regular post.
We are rapidly approaching the end of tax season and thought I would share some of my thoughts on when I know it is nearing the end:
- At the beginning of tax season, I wake up at 4 in the morning. Right now I am waking up at 1:45 and even though I would like to get more sleep, it is off to work I go.
- When I come home and say hi to my wife, she will talk to me for at least five minutes and I won’t even hear a word she says (although she says that is normal after tax season too).
- When you start dreaming about working on a tax return and you are not sure if it is a dream or not.
- When you physically hit the wall and have to leave at 4 in the afternoon and go home and get some sleep.
- When my I Phone, work phone, email and Instant Message all ring at the same time, you know it is the end of tax season.
- When people ask me how I am doing, I tell them great even though it is likely not true.
- When I tell people they owe $250,000 and are happy and when I tell people they are getting a refund for $50,000 and are sad.
- When you divide the number of returns in the door with the days left in tax season and go Oh @#$&***.
We have five days left and I usually get a lot of work done on the weekend so I think I am good shape and even not, that is what extensions are for. I personally have not filed a return by April 15 in over 30 years, so if you need an extension, it is not a big deal. Just make sure to pay in the tax you think you owe. If you don’t the interest rate is currently 5% plus you will owe a late payment penalty of .5% per month late (assuming you have paid in less than 90% of this year’s tax). Remember an extension grants you extra time to file, not extra time to pay. The extension gives you until October 15 to file.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
I think the penalty and interest rates are swapped, but practitioners know the game on not paying with the extension.