New IRS warning about tax form question ALL taxpayers must answer – experts say don’t leave it blank

The Internal Revenue Service has issued a warning regarding a tax form question that all taxpayers must answer when submitting their returns.

With less than a month to file your 2021 tax returns, the IRS has issued a warning about virtual currency transactions.

1

Taxpayers must complete a question at the top of Form 1040, Form 1040-SR, and Form 1040-NRCredit: Getty

For taxpayers, the critical question is at the top of Form 1040, Form 1040-SR, and Form 1040-NR.

The question states: “At any time in 20221, did you receive, sell, exchange or otherwise dispose of a financial interest in a virtual currency?”

According to the IRS, all taxpayers filing Form 1040, Form 1040-SR, or Form 1040-NR must check a box that answers either “Yes” or “No” to the virtual currency question.

The question needs to be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency in 2021.

When are taxes due in 2022?
Tax loophole allows more households to get credits worth $1,000 this year

What is the tax deadline?

Personal income tax returns are usually due April 15.

However, April 15 falls on a Friday this year, when Emancipation Day in Washington DC will be observed.

This is because Emancipation Day is April 16th. So if it falls on a weekend, as it does this year, it is observed on the weekday closest to the 16th.

Emancipation Day is a district holiday and government offices are closed.

read more tax refund stories

Therefore, the deadline for filing personal income tax returns and making tax payments is April 18.

Residents of Maine and Massachusetts will have until Tuesday, April 19.

April 18 is also Patriots Day, and it is an official holiday of both states.

What happens if I don’t file my taxes?

Failure to file your tax returns on time could result in hundreds of dollars in penalties.

For example, if you are hit with the so-called “failure to file penalty,” the IRS sends you a notice or letter.

Expect to see a penalty of five percent of your unpaid taxes, which could climb up to 25 percent, depending on how late you filed.

If you file your return more than 60 days late, you will be fined $435 or 100% of the tax you owe – whichever is less.

Apple services including Maps, App Store and iCloud DOWN down globally
Kris Jenner has been called 'wasteful' for having two huge fridges

It is important to note that the IRS charges interest in addition to penalties.

In 2021, people under 65 earning less than $12,550 did not need to file taxes.

We pay for your stories!

Do you have a story for The US Sun team?


Source link

Comments are closed.