Donna Genie recommends filing a tax extension instead of rushing by April 15. Pay what you owe to avoid penalties, but wait until October to file your return. The IRS released new guidance on Form 1099-K in March 2023 that could affect your taxes, and filing early means you might miss it or have to amend later.
If you're worried about getting your tax return filed and finalized with the April 15 deadline coming up, I'm going to give you some reasons you might want to rethink that decision. Now, paying by April 15th is always a good idea. If you go beyond April 15th to pay on your taxes, you'll have penalty and interest. So I'm not suggesting that you not pay your taxes, but what I'm suggesting is that you put those tax returns in the marinade and hold onto them without transmitting the final copy to the IRS until closer to the extended deadline in October. I'm going to give you a reason why I suggest that today, one more reason that just came about. It is now the end of March, so less than a month from the filing deadline, and the IRS has just come out with some new facts about filing the 1099K. We have another video about that if you want to reference that, but that actually didn't come out until mid March of 2023. So less than a month under the belt. Now, if you'd received a 1099k but done what most people did when they said, I just sold my old refrigerator, that doesn't count and threw that by the wayside, the IRS is now telling you they have a new way. They want you to report that 1099k so that you don't get a notice later on and the IRS doesn't send you a bill. So the IRS is now behind the eight ball a lot and is not able to issue guidance on new rules and regulations in a timely fashion to allow you to file your return by April 15. There are still rules that are being clarified and coming out well after the deadline. So do yourself a favor, put that return in the marinade and extend it. Wait, and if there are any other things that come about later on, you won't need to file an amended return to make those adjustments. There could also be ways that you'll save taxes that come out based on clarifications as well, so make sure that you're able to take advantage of that.
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