I was very near to file my federal taxes, but I have to wait for some K-1 forms before I can do so.
I do owe some federal taxes. Does the penalty keep on adding up every day? Will it be wise for me to file the taxes first, and amend my tax filing later after receiving the K-1 forms?
K-1 forms are notoriously late to arrive. But the deadline for filing is April 18 (for 2022), so you shouldn't have any penalties accruing. The only thing I can think of would be an underpayment penalty for quarterly estimated income taxes you owed.
It's always best to wait to file until you have all your forms. If the filing deadline nears, you can file for an extension. Just know that you'll need to go ahead and make payment of federal taxes due. The extension allows you to delay filing your return, but NOT for paying taxes owed (both federal and state).
Big penalties start after the filing deadline. File and pay before then. After youu get the K1 amend.
K-1 forms are notoriously late to arrive. But the deadline for filing is April 18 (for 2022), so you shouldn't have any penalties accruing. The only thing I can think of would be an underpayment penalty for quarterly estimated income taxes you owed.
It's always best to wait to file until you have all your forms. If the filing deadline nears, you can file for an extension. Just know that you'll need to go ahead and make payment of federal taxes due. The extension allows you to delay filing your return, but NOT for paying taxes owed (both federal and state).
Hi - you have a few choices.
(1) file an "Extension" form now, or
(2) file now and amend later.
Last year I got form K-1 late and discovered for many companies the form is Online. Internet search for "Tax Package Support for (the company name)". Create an account. Your name on the account is the same as it appears in your broker account.
Example: for Enterprise Product Partners search: www.taxpackagesupport.com/enterprise
Thanks for your quick reply, Kat (and others)!
A follow-up question: Does the underpayment penalty for quarterly estimated income taxes that I owed accrue every day? Or they stay the same prior the tax filing deadline?
@crimson91 I don't know the answer for certain, but my bet is that the penalties accrue for each day you are late to make payment. I mean, it's the IRS. They aren't known for being generous about things like this.
You need to pay by the filing deadline. Interest starts after the due date which is 04/18/23 for individuals. You can file an extension to avoid a late filing fee/penalty, but the extension only gives you extra time to file, not to pay. You can pay online at any time, see the link below for options.
See IRS - Payments and Penalties