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Miami Herald
23-05-2025
- Business
- Miami Herald
IRS Issues Tax Deadline Reminder To Millions
The Internal Revenue Service (IRS) has issued a reminder to millions of U.S. taxpayers living and working abroad to file their 2024 federal income tax returns and pay any taxes due by June 16. The extension applies to U.S. citizens and resident aliens outside the country, including dual citizens, offering them a two-month grace period after the regular April 15 deadline. All U.S. taxpayers, regardless of where they live, must report worldwide income to the IRS. That includes wages, interest, dividends and income from foreign sources. Accurate and timely filing is required to avoid interest, penalties, and the risk of missing out on available tax credits such as the foreign earned income exclusion. U.S. citizens or resident aliens whose residence and main place of business or post of duty is outside the U.S. and Puerto Rico, as well as members of the military on duty abroad, qualify for the automatic two-month extension-shifting their filing deadline from April 15 to June 16, 2025. Taxpayers unable to file by June 16 can request an additional extension to October 15, 2025. This extension is limited to filing-not to payment. Interest will accrue on any unpaid taxes starting from April 15, 2025. Electronic extension requests can be submitted through IRS systems, and Form 4868 is available for those unable to file online. Businesses should use Form 7004 for extensions, and can get a six-month extension. The fastest payment options include IRS Online Account, IRS Direct Pay, and the Electronic Federal Tax Payment System (EFTPS). U.S. taxpayers without a domestic bank account can transfer payments directly to the IRS. Debit and credit cards, as well as digital wallets, are also accepted and may include service fees. Individuals affected by the ongoing conflict in Israel, or with residences or businesses in Israel, Gaza, or the West Bank, have their federal filing and payment deadline extended to September 30, 2025. Military personnel on duty in combat zones may also qualify for automatic extensions. Taxpayers with foreign financial accounts holding more than $10,000 at any point during 2024 must submit Form 114 (FBAR) electronically to the Treasury Department's Financial Crimes Enforcement Network. The initial deadline was April 15, 2025, with an automatic extension to October 15, 2025, for those who missed the first date. Jay A. Soled,professor and chair of the Department of Accounting and Information Systems at Rutgers Business School, New Jersey,previously told Newsweek: "Even with the tax-filing extension, interest will apply to any 2024 tax payments received after April 15. This means that unpaid tax-year 2024 tax balances will begin accruing interest, currently at the rate of seven percent per year, compounded daily, after April 15, 2025." Commenting on why individuals working and living abroad have a two-month filing extension, Soled said it was "undoubtedly a relic of a bygone era when it was difficult for those living overseas to receive third-party information returns." He added that "in light of current technological developments, Congress would be wise to eliminate this exception." Richard D. Pomp, professor of law at the UConn Law School, Connecticut,previously told Newsweek, while discussing why individuals working and living abroad have a two-month filing extension: "The extension is a very old rule that predates the digital economy. Correspondence in those early days took place by mail and the time it took for mail to go back and forth across the ocean could lead to delays that taxpayers living in the country did not experience. In the digital economy, things are far more efficient and the rule is probably unduly generous." He added: "We are currently living through a total state of chaos at the IRS. Whenever possible, taxpayers abroad should file electronically and verify with screen shots and saved files, and copies of all documentation. U.S. taxpayers abroad have until June 16, 2025, to file their returns and pay taxes due for 2024, with eligible individuals able to seek additional extensions or payment arrangements if they are unable to meet this deadline. Taxpayers affected by the Israel-Hamas conflict or stationed in combat zones should review specific guidance and utilize all available IRS resources for support. Related Articles Trump Admin Gets a Win as Judge Allows IRS to Share Tax Data With ICEHunter Biden Drops Lawsuit Against IRS Employees: 'Afraid to Fight'IRS Issues Advice As Natural Disaster Season ApproachesIRS Issues Guidance For Those Facing May 15 Tax Deadline 2025 NEWSWEEK DIGITAL LLC.
Newsweek
23-05-2025
- Business
- Newsweek
IRS Issues Tax Deadline Reminder To Millions
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Internal Revenue Service (IRS) has issued a reminder to millions of U.S. taxpayers living and working abroad to file their 2024 federal income tax returns and pay any taxes due by June 16. The extension applies to U.S. citizens and resident aliens outside the country, including dual citizens, offering them a two-month grace period after the regular April 15 deadline. Why It Matters All U.S. taxpayers, regardless of where they live, must report worldwide income to the IRS. That includes wages, interest, dividends and income from foreign sources. Accurate and timely filing is required to avoid interest, penalties, and the risk of missing out on available tax credits such as the foreign earned income exclusion. File photo: the Internal Revenue Service Headquarters (IRS) building is seen in Washington. File photo: the Internal Revenue Service Headquarters (IRS) building is seen in Washington. J. David Ake/AP What To Know U.S. citizens or resident aliens whose residence and main place of business or post of duty is outside the U.S. and Puerto Rico, as well as members of the military on duty abroad, qualify for the automatic two-month extension—shifting their filing deadline from April 15 to June 16, 2025. Taxpayers unable to file by June 16 can request an additional extension to October 15, 2025. This extension is limited to filing—not to payment. Interest will accrue on any unpaid taxes starting from April 15, 2025. Electronic extension requests can be submitted through IRS systems, and Form 4868 is available for those unable to file online. Businesses should use Form 7004 for extensions, and can get a six-month extension. The fastest payment options include IRS Online Account, IRS Direct Pay, and the Electronic Federal Tax Payment System (EFTPS). U.S. taxpayers without a domestic bank account can transfer payments directly to the IRS. Debit and credit cards, as well as digital wallets, are also accepted and may include service fees. Individuals affected by the ongoing conflict in Israel, or with residences or businesses in Israel, Gaza, or the West Bank, have their federal filing and payment deadline extended to September 30, 2025. Military personnel on duty in combat zones may also qualify for automatic extensions. Taxpayers with foreign financial accounts holding more than $10,000 at any point during 2024 must submit Form 114 (FBAR) electronically to the Treasury Department's Financial Crimes Enforcement Network. The initial deadline was April 15, 2025, with an automatic extension to October 15, 2025, for those who missed the first date. What People Are Saying Jay A. Soled, professor and chair of the Department of Accounting and Information Systems at Rutgers Business School, New Jersey, previously told Newsweek: "Even with the tax-filing extension, interest will apply to any 2024 tax payments received after April 15. This means that unpaid tax-year 2024 tax balances will begin accruing interest, currently at the rate of seven percent per year, compounded daily, after April 15, 2025." Commenting on why individuals working and living abroad have a two-month filing extension, Soled said it was "undoubtedly a relic of a bygone era when it was difficult for those living overseas to receive third-party information returns." He added that "in light of current technological developments, Congress would be wise to eliminate this exception." Richard D. Pomp, professor of law at the UConn Law School, Connecticut, previously told Newsweek, while discussing why individuals working and living abroad have a two-month filing extension: "The extension is a very old rule that predates the digital economy. Correspondence in those early days took place by mail and the time it took for mail to go back and forth across the ocean could lead to delays that taxpayers living in the country did not experience. In the digital economy, things are far more efficient and the rule is probably unduly generous." He added: "We are currently living through a total state of chaos at the IRS. Whenever possible, taxpayers abroad should file electronically and verify with screen shots and saved files, and copies of all documentation. What Happens Next U.S. taxpayers abroad have until June 16, 2025, to file their returns and pay taxes due for 2024, with eligible individuals able to seek additional extensions or payment arrangements if they are unable to meet this deadline. Taxpayers affected by the Israel-Hamas conflict or stationed in combat zones should review specific guidance and utilize all available IRS resources for support.
Yahoo
17-05-2025
- General
- Yahoo
Our church is proof: Federal incentives for solar work
The old spiritual 'This Little Light of Mine' has meaning for anyone who cares to listen, no matter their faith background. It's a call to action, challenging every hearer to be a light in the world and to persist in well-doing. As it turns out, one way that we can let our light shine is by turning the lights off. Dad jokes notwithstanding, climate change is getting worse, and as it worsens, we have an increasing responsibility to lessen our contribution to the problem. This doesn't mean sitting in the dark. Being responsible doesn't mean being impractical. It means using our common sense to be smarter about our energy use. That can be as simple as turning out the lights when we leave the room, or better yet, installing a light system that shuts off the lights automatically when we're gone. At University Mennonite Church, where I serve as treasurer, we're doing what we can to be more energy efficient. These efforts started years ago with a few modest projects, upgrading our church building to use less energy. These upgrades, which included new insulation and energy-efficient LED lighting, were successful, and this success encouraged us to do more. So, in 2023, we decided to go solar. Cobbling together some church funds, a grant from West Penn Power, additional support from the Mennonite Creation Care Network, and roughly $10,000 through federal incentives, we were able to purchase and install a 27.75 kW solar array atop the church roof. The solar array provides about half of our energy needs. The year before we went solar, we spent roughly $5,600 — almost $500 a month — on power. The year afterward, we spent just $2,500, or barely $200 a month. When we crunched the numbers — a pastime of mine — we found that the system will pay for itself in just eight years. So, in addition to letting us put our values in action, allowing us to cut our energy use and reduce our contribution to climate change, our solar array is also saving the church money. In practical terms, this means more resources will be available to carry out our mission. It's a win in every possible respect. Yet even as more churches are looking to add solar power as we did, Congress is looking to cut the federal investments that make solar energy affordable and accessible. The threat is twofold. Current law provides tax credits that lower the cost of solar panels by 30 percent. These tax credits have been available for years, but recent changes to the law gave nonprofits, including churches and schools, the ability to benefit from these credits. This is called Direct Pay. It lets nonprofits benefit from solar tax credits by giving them direct cash payments. Whatever tax credits they would have received if they were a business, they get exactly that amount in a direct cash payment, leveling the playing field. Our church wasn't able to benefit from Direct Pay; we installed our solar panels before it launched. But thankfully, the private contractor who installed our solar array shared the tax-credit savings with the church. But all these savings will disappear if Congress repeals them. The 30 percent tax credit and the Direct Pay program could be eliminated. The cost of energy would rise for everyone. The responsible choice of switching to clean energy would become less practical and more painful. Everyone from churches to businesses to families would find it harder to be part of the solution to one of the biggest problems of our time. It's understandable that Congress should want to see public resources used more efficiently. More efficiency means greater impact, and that's a laudable goal. But cutting federal investments in clean energy won't make the government more efficient. It won't give taxpayers a better bang for their buck. It will, however, make life more expensive for Americans. James Rosenberger is a 49-year resident of State College and member of University Mennonite Church. He taught statistics at Penn State for 42 years, and served on the State College Borough Council for eight years.
Yahoo
14-05-2025
- Business
- Yahoo
Smith speaks out on energy cuts
May 13—LIMA — Lima Mayor Sharetta Smith touted the city's floating solar panels as examples of the value of Direct Pay tax credits in a press call with Power a Clean Future Ohio and two other Ohio mayors Tuesday. Smith, Athens Mayor Steve Patterson and Solon Mayor Ed Kraus spoke about projects the Inflation Reduction Act provision has made possible in their cities and expressed worry with an expected tax package markup set to go through the House Ways and Means Committee. "The IRA has allowed Lima to pursue floating solar panels on two of our reservoirs," Smith said. "This project would not be feasible without the clean energy tax credits. Powering our water treatment plant through electricity saves us $1 million per year." The draft text from the House Committee on Energy and Commerce calls for cuts to spending on several Inflation Reduction Act programs, including rollbacks to tax credits through the Direct Pay program. In Smith's December 2024 year-end report ( the city said the array of 3,444 panels would have a power output of two megawatts and would generate enough clean energy to power 400 to 500 homes, saving the city nearly $10 million in electricity costs over its lifetime. Smith announced an Ohio BUILDS Grant and a Department of Energy grant to go toward the solar array in June ( Executive director of Power a Clean Future Ohio Joe Flarida said the issue makes projects like the solar array affordable for local governments everywhere. "When we reached out to mayors across Ohio, we were not short on options," he said. "This is a cost-cutting issue that affects local government. They are critical tools in our tax code that help build the economy of the future and there may be no better state across the country that stands to benefit than Ohio." "This project is leveraging $890,000 in Direct Pay tax credits," Smith added. "We would not be able to do this without this program. (Cuts) threaten us being able to be innovative and it's not just about the current project, it's about the feasibility of future projects." Reach Jacob Espinosa at 567-242-0399. Featured Local Savings
Forbes
16-04-2025
- Business
- Forbes
What To Do If You Missed The IRS Tax Filing Deadline 2025
What to do if you missed the tax filing deadline Missing the tax filing deadline is not an uncommon occurrence, and the Internal Revenue Service provides several mechanisms to help you get back on track. This article outlines the essential steps you should take if you failed to file taxes on Tax Day. The IRS imposes a significant penalty for failing to file your tax return on time. This penalty is calculated at 5% of the unpaid taxes for each month or part of a month that the return is overdue, up to a maximum of 25%. If your return is more than 60 days late, the minimum penalty can be either $510 or 100% of the unpaid tax, whichever is less. The best way to reduce or avoid this penalty is to file your return as quickly as possible, even if you cannot afford to pay the full amount you owe. Doing so stops the failure-to-file penalty from accruing further and potentially reduces future enforcement actions, including wage garnishment or levies. Importantly, the act of filing demonstrates a willingness to comply, which may work in your favor when seeking penalty abatement or negotiating a payment plan later. E-filing is the fastest and most secure method of submitting your tax return. You can use the IRS Free File system or a third-party tax preparation software, depending on your income and the complexity of your return. If your return is more than three years overdue, be aware that the IRS may have already filed a substitute return on your behalf using information from your W-2s and 1099s. These substitute returns often result in higher tax liabilities because they do not account for deductions or credits you may be eligible for. The failure-to-pay penalty is a distinct charge from failure-to-file and accrues separately. It is assessed at a rate of 0.5% of the unpaid tax per month up to a maximum of 25% of the total tax owed. This penalty is in addition to the interest that compounds daily on the outstanding balance, calculated at a rate set quarterly by the IRS. Therefore, it is crucial to pay as much as you can, as soon as possible. Even partial payments can reduce the accrual of penalties and interest. If possible, pay your balance due in full using IRS Direct Pay or through your tax preparation software. Direct Pay is a service that allows you to transfer funds directly from a checking or savings account without additional fees. If you are using professional tax software, most platforms also integrate secure electronic payment options, including bank transfers and credit/debit card payments. Note that if you use a credit card, you may incur processing fees and potentially high interest rates from the card issuer. You should also retain records of your payment confirmation, as it may be needed for future correspondence with the IRS or your tax advisor. Even if you cannot pay your entire tax bill, making a substantial partial payment immediately can help limit the financial consequences. Any amount paid reduces the principal balance upon which penalties and interest are calculated. The IRS offers several mechanisms for deferred payment: • Short-Term Payment Plans If you can pay the full amount within 120 days, you may apply for a short-term payment plan. This option does not require a formal agreement and generally avoids setup fees. To qualify, your total balance (including taxes, penalties, and interest) must be less than $100,000. Applications can be submitted online via the IRS website, by phone, or by visiting a local IRS office. Approval is generally quick, especially for online submissions. • Installment Agreements For longer repayment periods, you can apply online or by filing Form 9465, Installment Agreement Request. These plans are generally available if you owe less than $50,000 in combined tax, penalties, and interest and have filed all required tax returns. Monthly payments can be made via direct debit, payroll deduction, check, money order, or credit card. Direct debit is highly recommended because it reduces the risk of missed payments and is a prerequisite for lower setup fees. • Offer In Compromise In cases of significant financial hardship, you may qualify for an OIC, which allows you to settle your tax debt for less than the full amount owed. Eligibility is based on a detailed analysis of your income, assets, expenses, and ability to pay. You may use the pre-qualifier tool on the IRS website to gauge your eligibility. Remember, while an OIC can provide substantial relief, it is not a quick fix. The application process can take months, and many offers are rejected. Therefore, it is essential to consult a tax professional with experience in IRS negotiations before pursuing this option. A qualified advisor can help assess your eligibility, prepare accurate documentation, and maximize the likelihood of acceptance. If this is your first time missing a filing or payment deadline, you may be eligible for the IRS's FTA program. To qualify, you must have no penalties for the three prior tax years, have filed all required returns (or filed a valid extension), and have paid or arranged to pay any tax due. This abatement is available for one tax period only. When requesting FTA, ensure that you meet all the criteria before contacting the IRS. While the process can often be completed over the phone, more complex cases may benefit from a written request that includes an explanation of your prior compliance history. If you are not eligible for FTA, you may still qualify for penalty relief if you can demonstrate reasonable cause. Common grounds include serious illness, death in the family, natural disasters, or an inability to obtain critical records due to circumstances outside your control. The IRS evaluates reasonable cause on a case-by-case basis, considering the facts and circumstances of each situation. To apply, you must submit a detailed written statement explaining what happened, when it happened, and how the event impacted your ability to comply with tax requirements. Documentation such as hospital records, death certificates, insurance reports, or third-party affidavits can be instrumental in establishing credibility. The IRS communicates with taxpayers primarily through written notices, and these letters serve as the official method of alerting you to outstanding balances, missing returns, potential penalties, and impending enforcement actions. Common notices include CP14, which notifies you of a balance due; CP501, a follow-up reminder that your tax debt remains unpaid; and CP504, an urgent notice warning of imminent collection actions such as levies. Each notice contains vital information about your tax account, including the type of issue, the amount owed, the due date for resolution, and instructions for responding. Failing to respond may lead to enforced collection activities, such as wage garnishments, bank levies, or federal tax liens. These consequences not only compound your financial difficulties but may also negatively affect your credit rating and future financial opportunities. Therefore, it is imperative that you read every notice carefully, understand its implications, and act on it promptly. Organize your correspondence in a dedicated folder and take note of deadlines or response instructions included in each notice. If you are unsure about the meaning or accuracy of any portion of a notice, seek clarification as soon as possible. If you are dealing with multiple years of unfiled returns, significant outstanding balances, or IRS enforcement actions, you can benefit substantially from expert guidance. A certified public accountant, enrolled agent, or tax attorney has specialized knowledge of tax law and IRS procedures and can help you navigate complex matters including audits, negotiations, and penalty mitigation strategies. Their assistance ensures accuracy in filing and provides a layer of protection for your legal rights and financial interests. You can use the IRS Directory of Federal Tax Return Preparers for verifying a professional's status and locating advisors in your area. To ensure this doesn't happen again, stay organized and start early to optimize your tax planning. Keep a dedicated folder where you store your tax documents throughout the year, such as W-2s, 1099s, and deductible expense receipts. This helps streamline the process when it's time to file. Start your tax preparation by February or even earlier to give yourself ample time to gather information, fix errors, and consult with a tax professional if needed. Use digital reminders and calendar tools to stay on top of key dates like the April 15 filing deadline and quarterly estimated payment deadlines. If you think you need more time to file, submit Form 4868 for a six-month extension but note that it does not extend the time to pay. Estimate and pay as much of your tax bill as possible by the original deadline to avoid penalties. Missing the tax filing deadline is not the end of the world. The key is to act quickly, stay organized, and take advantage of the resources and programs the IRS provides. In doing so, you can minimize financial damage and set yourself on a path to long-term compliance. If you're uncertain where to begin, speak with a qualified tax professional to evaluate your unique situation and guide you through the next steps.
