VIRGINIA BEACH, VA - (Marketwired - Oct 9, 2013) - Liberty Tax Service is offering a 25% discount off of tax preparation fees to those furloughed federal workers who have yet to file their federal tax return. As the government shut down continues, the Internal Revenue Service (IRS) stated on their website, "You should continue to file and pay taxes as normal." Liberty Tax Service is reminding taxpayers of the upcoming October 15th filing deadline.
"We don't want anyone burdened with penalties or late fees because the federal government has shut many of its doors and taxpayers believe this is a reprieve," states Martha O'Gorman, Chief Marketing Officer for Liberty Tax Service.
The IRS also announced that they "will be unable to issue refunds during this time." Of the 12+ million taxpayers who requested an automatic six-month extension this year, it appears those anticipating a refund will have to wait until the IRS operations are back to normal.
A common misconception for filing an extension is that taxpayers can delay payment. This is not the case -- if an individual owes taxes the payment deadline was April 15. Late payment penalties and interest are assessed and continue to accrue when you do not send the IRS your tax obligation by the tax deadline. The late payment penalty is usually 0.5% of your unpaid taxes, with the maximum at 25%.
The IRS will also assess a late filing penalty of 5% of the unpaid taxes not paid by the due date for each month your taxes are late, with a maximum also at 25%. If your payment is more than 60 days past due, the minimum late filing penalty is $135 or the balance of the taxes you owe, whichever is less. More importantly, willful failure or fraudulent failure to pay taxes or file a return have higher penalties (including possible jail time).
Taxpayers have a number of options available to pay their tax liability. Those that can pay their tax liability in full can do so by debit or credit card, electronic funds transfer or check or money order. Alternatively, taxpayers may ask the IRS for permission to make monthly installment payments by attaching Form 9465, Installment Agreement Request to their tax return. Another option for payments is to have the funds directly debited from a bank account. A Liberty Tax Service consultant will assist you with these options.
Liberty Tax Service reiterates the importance of double checking your tax return and not rushing through it, possibly missing credits and deductions. There is a little good news for late filers out there, if you get money back, you won't be charged any penalties or fees.
And many people still have time to file. The IRS has allowed more time for some people, including members of the military and others serving in Iraq, Afghanistan or other combat zones (to identify these zones visit http://www.irs.gov/newsroom/article/0,,id=108331,00.html). Also people living in parts of Colorado's designated disaster areas have until December 2, 2013 to file and pay.
This offer is valid at participating Liberty Tax Service locations. To find a local Liberty Tax Service office, call 1-866-871-1040 or visit www.LibertyTax.com for more information.
Founded in 1997 by CEO John T. Hewitt, JTH Holding, Inc. (NASDAQ: TAX) is the parent company of Liberty Tax Service. As the fastest-growing tax preparation franchise, Liberty Tax Service has prepared almost 16 million individual income tax returns. Liberty Tax also offers an online tax service, eSmart Tax, which enables customers to do their own taxes wherever there's a computer. eSmart Tax is backed by the tax professionals at Liberty Tax and its nationwide network of over 30,000 tax preparers, ready to offer their assistance at any time. For a more in-depth look at Liberty Tax, visit www.libertytax.com.
Chief Marketing Officer
Liberty Tax Service
Director of Investor Relations
Liberty Tax Service