Time’s up for tax filers

Procrastinators get busy: Oct. 17 is extension deadline

It might not be April, but for about 13.5 million Americans, it’s tax season. That’s because the Oct. 17 deadline for submitting returns for those granted extensions is approaching fast.

“Don’t procrastinate,” says Melissa Labant, director of tax policy and advocacy at the American Institute of Certified Public Accountants. “It always takes longer than you anticipate to gather all your tax data, prepare your return and submit it.”

If you blow the deadline, consequences can include separate penalties for late filing and late payment, plus interest, and it can add up fast.

More Americans continue to switch from paper returns to e- filing, which is something Labant recommends. But, “make sure that you have a copy ( of your) 2014 tax return handy. You may need some of the information on that return,” including your adjusted gross income.

Some taxpayers are eligible for additional extensions. Military members in combat zones generally are eligible for extensions up to 180 days after their last day in the combat zone.

Those in federally declared disaster areas — such as those affected by Hurricane Hermine, the Louisiana flooding and the flooding and landslides in West Virginia — are usually eligible for extra extensions. To determine your eligibility, check the IRS website at www. irs. gov/ uac/ taxrelief- in- disaster- situations.

If you are a victim of a disaster but it is not covered under a federal disaster area, Labant says, “you may still request an extension of time to file if you have ‘ good cause’ to file late. The IRS will determine whether your particular situation warrants an extension.”

If you are working on your taxes now, you can view it as a valuable opportunity. The IRS suggests taxpayers take this time to review their withholding rates because of several changes that could slow the pace of refunds next year, including extra scrutiny to prevent identity theft.

“With these changes, it makes good sense on many different levels to check on your withholding and plan ahead for next tax season,” IRS Commissioner John Koskinen said in an IRS statement.

Now is a good time for small businesses, which make estimated tax payments each quarter, to examine those estimates. “They may want to adjust those estimated tax payments for the remainder of the year,” Labant says.

“It is also a good time to be thinking about financial planning” more broadly, Labant contends, including 401( k) contributions and portfolio diversification. Using this time for a personal finance checkup can save yourself money and a headache later.