Last Day To File 2017 Taxes, Get Extensions: 11 Common Questions

This is one of those years when tax preparers will have to wait a couple of extra days before popping the cork on a bottle of champagne in the race against the tax filing deadline. Tax Day is April 17 this year, not April 15, as is traditional. Returns must be electronically filed or postmarked by midnight on the 17th.

The tax season is two days longer this year because April 15 falls on a Sunday, and Monday, April 16, is Emancipation Day in the District of Columbia, which affects tax filing across the country. So that means taxpayers have a couple of extra days to gather their receipts, mortgage interest statements and other items needed for their 2017 returns.

The IRS expects more than 70 percent of taxpayers to get tax refunds this year. Last year, nearly 112 million refunds were issued, with an average refund of $2,895.

Here are some common questions about tax season:

1. What happens if you can’t make the filing deadline? Taxpayers requesting an extension will have until Monday, Oct. 15, 2018, to file. But there’s a catch: To avoid a penalty on taxes owed, the request for an extension, found on the IRS website, must be filed by April 17. The six-month extension is automatic, provided the request is paid on time.

Filing for an extension doesn’t give you extra time to pay taxes owed. You still have to estimate and pay what you owe by April 17, and you’ll be charged interest on the amount not paid by the deadline.

You can pay all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System or a credit or debit card. This way, you won't have to file a separate extension form and you will receive a confirmation number for your records.

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2. What should people who can’t pay right now do? They can meet their tax obligation by making monthly installments by applying for an online payment agreement with the IRS. They should also find out if they qualify for an offer in compromise — a way to settle their tax debt for less than the full amount, or request that the IRS temporarily delay collection until their financial situation improves.

3. Where can you find the most reputable income tax return preparers? The IRS says it’s important to find a trusted tax professional. A national database of tax professional groups is available on IRS.gov. By law, all paid tax preparers must have a Preparer Tax Identification Number, or PTIN. Paid preparers must sign the return and include their PTIN.

4. What do you need before filing a return? The IRS offers several tips, including making sure you have all your tax records, including receipts, canceled checks and other records that support income, deductions or tax credits that you claim.

Make sure you give your return a thorough review. Mistakes slow down your tax refund. If you file a paper return, be sure to check all Social Security numbers. That's one of the most common errors.

5. What’s best, direct deposit or a check in the mail? Choosing electronic filing and direct deposit for refunds are the fastest and safest ways to file an accurate income tax return and receive a refund. Free File is available only on IRS.gov.

If you made $62,000 or less, you can use free tax software to file your federal return. If you earned more, you can use Free File Fillable Forms, an electronic version of IRS paper forms.

6. What should you do if you find out a tax return has already been filed using your name and Social Security number? Tax-related identity theft is still a big problem, though the IRS says it has declined markedly in recent years.

If you’re a victim of tax-related identity theft, you’ll need to respond immediately to any IRS notice and call the number provided; complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return is rejected because of a duplicate filing under your SSN or you are instructed to do so. Use a fillable form at IRS.gov, print, then attach the form to your return and mail according to instructions.

7. Is the individual mandate to buy health insurance still in effect? In the new tax bill, Congress upended the Affordable Care Act individual mandate, which requires most Americans to carry a minimum level of health coverage unless they qualify for a hardship exemption. The mandate is still in effect for 2018, which means you’ll pay a steep tax fine if you don’t have health insurance.

If you purchased health insurance through the Marketplace, you will need the information in Form 1095-A to file. If your employer provides health insurance, you'll get a statement. If you have an individual policy, you'll need to provide proof of that, too.

8. Will the new tax bill affect 2017 taxes? It won’t, but it’s a good idea to ask your tax preparer about changes that will be effective in the 2019 tax season, according to Consumer Reports. Taxpayers who have itemized their returns in years past should probably still do so when they file this year, but next year about half of the write-offs will be eliminated.

9. How can taxpayers check the status of their refunds? If a month or so has passed since you filed, you may want to check with the IRS to find out the status of your refund. Once on the site, you’ll be able to download the IRS2Go app to check your refund status. The IRS says you should only worry about the status of your refund if 21 days have passed since electronically filing or it’s been more than six weeks since you mailed your paper return.

10. What happens to people who haven’t filed income taxes in years? If they’re due a refund from the IRS, there’s no penalty and taxpayers have three years to claim their refunds, but bad things will happen if the opposite is true — including steep penalties or jail. The latter isn’t likely to happen, according to lawyers.com, because the IRS is interested in getting its money. But the former can and does happen.

It’s not that unusual for people not to file income tax returns, even when the IRS owes them money. In fact, the IRS said last month that about $1.1 billion in unclaimed refunds for the 2014 tax year must be claimed by this year’s tax deadline on Tuesday, April 17. They’re not small checks, either. The IRS estimates they average amount due is about $847. If the money isn’t claimed, the government gets it.

11. How long do you have to keep your tax records? Records should be kept for at least three years, the IRS says. Taxpayers who are changing tax software products this filing season will need their adjusted gross income from their 2016 tax return in order to file electronically. The Electronic Filing Pin is no longer an option. Taxpayers can visit IRS.Gov/GetReady for more tips on preparing to file their 2017 tax return.

Patch editor Deb Belt contributed to this report.

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