Where Does Tax Day Come From
Income tax in the US was first collected during the Civil War, but the law that enacted the tax was repealed in 1871. A new income tax law was passed in 1894 but was soon ruled unconstitutional by the Supreme Court. This meant that in order for the government to collect income tax, the constitution would have to be amendedwhich it was, in 1913, with the 16th Amendment. Tax Day was first set as March 1, then moved to March 15 in 1918, and finally to April 15 in 1955.
What Is A Tax Refund
Every year, every US taxpayer owes a certain amount of their income to the federal government for income tax. The taxpayer’s employer will withhold a portion of each paycheck throughout the year to be used to pay income taxes. When the amount withheld exceeds the amount of tax the person actually owed, the remaining amount will be refunded to them. People who are self-employed or work as independent contractors follow a different procedure, but can end up receiving a refund as well.
A tax refund often signals that the taxpayer withheld too much for their income taxes, but the size of the refund can also be increased by credits resulting from various sources that reflect the taxpayer’s situation for example, a taxpayer could receive a credit to offset their own business expenses or the costs of having children or other dependents.
About 75% of Americans receive a tax refund. The average amount varies by state, but nationwide, the average is approximately $3,000. Since an eCommerce business isn’t limited to local customers, the average refund in your state isn’t necessarily relevant, but can be if most of your customers come from certain states. If you want to see the specific state-by-state averages, Business Insider has a useful article and infographic they update annually.
When Is Irs Free File Available
IRS Free File, a partnership between the IRS and leading tax-software companies, traditionally becomes available in January. The program allows taxpayers under a certain income threshold to file electronically for free, using software provided by participating providers.
Free File typically begins before tax season officially starts, so the partner companies hold the completed returns until they can be filed electronically with the IRS.
Recommended Reading: Income Required To File Taxes
It’s Better To File Late Than Not At All
You might be thinking, âIf Iâve already missed the deadline, whatâs a few more weeks?â But the sooner you submit your tax return, the better . So do your best to file the next day or soon thereafter.
If you earn $73,000 or less per year, you can file your return online using one of the IRSâ free federal tax filing options, which provides complimentary tax-preparation software. If you earn more than $73,000, you can still file online using the IRSâ free electronic forms, but youâll need some tax-prep knowledge if you choose to go this route.
If They Serve Their Full Sentences Todd Will Be Released In 2035 And Julie In 2030
Todd, 53, who prosecutors called the “mastermind” of the couple’s years-long tax and bank fraud scheme, will be incarcerated at Federal Prison Camp Pensacola.
He has been handed a 12-year sentence, meaning that his current release date is scheduled for 2035 when he is 65.
Meanwhile, Julie, 50, who prosecutors believed played a lesser role, was sentenced to seven years. She was set to serve her time at Federal Correctional Institution Marianna, which is 144 miles east of Todd’s prison, but reported first to a federal medical center in Kentucky.
If she carries out her full sentence, she will be released in 2030, aged 57.
Todd’s prison is minimum security, while the Marianna prison is medium security. The couple will be able to do things like take part in recreational activities, such as sports, music, and crafts.
Following their jail time, Todd and Julie have also both been sentenced to 16 months of probation.
You May Like: Do I Need To File Taxes If I Didn’t Work
Origins Of The Fair Tax
Bruce Bartlett, a tax expert who worked in Ronald Reagans White House and worked for other Republicans, explained years ago how the proposal marketed today as the Fair Tax was initially pitched by an organization created by the Church of Scientology during its dispute with the IRS over whether it constituted a church and was thus tax-exempt.
The Church of Scientologys only goal in the matter was to eliminate the agency causing it trouble, and lost interest once the IRS threw in the towel and allowed it to present itself as a church.
But by then several politicians had bought into the idea and introduced it as legislation, which has been reintroduced in each Congress since as the Fair Tax.
Sellers What You Need To Know
If you sell items that do not qualify for the sales tax holiday exemption, you can advertise that you are paying the sales tax for your customers. The following conditions apply:
- You may not indicate or imply that the sale is exempt or excluded from tax and
- Any purchaser’s receipt or statement you provide to your customer must separately state the amount of sales tax and indicate the tax will be paid by the seller.
If you sold qualifying items tax free during the sales tax holiday, only include these tax-free sales in Total Texas Sales of your sales tax return. Do not include your tax-free sales in Taxable Sales .
Be aware, if you sold qualifying exempt items and collected sales tax, then you must remit it to our office.
Also Check: Tax Id Numbers For Businesses
Is Tax Day Always April 15
Yes, the standard deadline to file a federal income tax return is always April 15. However, the Internal Revenue Service is very flexible against things that can concern taxpayers. As seen in 2020 and 2021, the Internal Revenue Service postponed the tax filing deadline to July 15 and May 15, respectively.
How To Make An Estimated Tax Payment
The fastest and easiest way taxpayers can make an estimated tax payment is to do so electronically using IRS Direct Pay. Taxpayers can schedule a payment before the January 17 deadline. They can also make a payment through their IRS Online Account or the Electronic Filing Tax Payment System.
More information on other payment options is available at Pay Online.
Don’t Miss: States With The Lowest Income Taxes
Some States Do Not Allow For Sbrs Gun Owners In Those States Do Have Options
They could add a 16-inch or greater barrel, converting the firearm from a pistol into a rifle. In the past, the ATF has stated that a pistol could never be converted into a rifle, but the regulation seems to change this determination. The pistol stabilizing device could also be removed, and the gun owner can modify their firearms not to be able to accept a pistol brace. The gun owner also has the option of destroying the firearm. The final option would be turning the gun into the ATF for zero compensation.
The new regulation is expected to cost gun owners over $260 million. It is expected to cost the federal government over $3 million. In addition to the cost, it will put an increasing burden on the already overwhelmed NFA division of the ATF. the ATF claims that the average wait time will be 90 days, although Silencer Shop is showing a wait time of eight months for a tax stamp. Not only will it bog down the new tax stamp applications for SBRs, but it might drastically increase the wait time for other NFA items, such as sound suppressors.
There will be challenges to the new rule. The Second Amendment Foundation has an ongoing case in a federal District Court in North Dakota over the new regulation. Other legal challenges are expected shortly from other Second Amendment organizations.
Ammoland News reached out to SB tactical for a comment on the final rule but has not received one at the time of this writing.
About John Crump
Is Tax Day A Public Holiday
Although Tax Day is not a public holiday, businesses and schools may be closed because it falls on the same date as Patriots’ Day in 2022, which is a public holiday in Maine and Massachusetts.
Tax Day is an important date to remember.
©iStockphoto.com/joel-t
The 2020 tax filing date has been moved from April 15 to July 15 in light of the COVID-19 novel coronavirus crisis.
Recommended Reading: Why Is My Tax Refund More Than What I Filed
Described As A 23 Percent Sales Tax Really 30 Percent Really Even Higher Than That
Under the bill, if you buy something that costs $100 before tax, you pay $30 of national sales tax. Most of us would call that a 30 percent sales tax. Proponents, however, call it a 23 percent tax, because that $30 is 23 percent of your gross payment of $130, your payment including the sales tax. Proponents claim this method of calculation is more comparable to how we think about the income tax but its main result is widespread confusion.
If enacted, the tax would almost surely be amended to have an even higher rate. Back in 2004 William Gale at the Tax Policy Center estimated that simply replacing the taxes eliminated under the plan would require that the national sales tax have a rate of 60 percent.
Other Deadlines Including $15b In Unclaimed 2018 Refunds
An estimated 1.5 million taxpayers did not file a 2018 tax return to claim tax refunds worth more than $1.5 billion, the IRS said. There has been a three-year window of opportunity to claim that years refund, which closes on April 18 for most people.
“If they do not file a 2018 tax return by April 18, 2022, the money becomes the property of the U.S. Treasury. The law requires taxpayers to properly address, mail, and ensure the 2018 tax return is postmarked by that date,” the agency noted.
April 18 is also the deadline to make 2021 contributions to Individual Retirement Arrangements . Contributions can be made to a traditional or Roth IRA until April 18 but must be designated for 2021 to the financial institution, the IRS said.
Additionally, employment taxes are due on April 18 for “household employees including housekeepers, maids, babysitters, gardeners and others who work in or around a private residence as an employee if they were paid $2,300.”
Read Also: What Do You Need To Do Your Taxes
Tax Day Recap: What To Know On The Last Day To File Tax Returns In 2022
Tax season procrastinators had one more chance to sort out returns and pay any taxes owed.
As of April 8, more than 103 million federal tax returns were filed. The IRS estimates it will receive more than 160 million returns this year.
For those taxpayers getting a refund, their deposit or check was likely larger than in 2021. IRS data shows refunds are averaging $3,175 this season, nearly 10% higher than last year.
Below is a recap of all the information you need to know on the final day of the 2022 tax season.
WHEN ARE TAX RETURNS DUE?: These are the deadlines to file
File A Paper Tax Return Prepare To Wait
Tens of millions of tax returns will flood the Internal Revenue Service now that the April 18 filing deadline is here. But the headaches of the latest tax season and last year’s leftover troubles will linger in the months ahead.
“The IRS has to get current with not only prior years but this year’s tax returns before they move into the next filing season without this albatross around its neck,” said Erin Collins, the national taxpayer advocate.
For the IRS, it has meant putting as many resources and people as possible toward clearing out the backlog that built up in 2021.
For taxpayers, it can mean repeated efforts to get an IRS employee on the phone to answer a question or help with a problem. It means anyone who has filed a paper return this year risks ridiculously long waits of possibly six months or even nine months to receive an income tax refund.
The IRS has historically been able to process a refund within two weeks for an electronically filed tax return and up to six weeks for a paper tax return.
Susan Tompor, Detroit Free Press
Don’t Miss: Ohio Blanket Tax Exempt Form
What Happens If You Miss The Deadline
If you miss the tax filing deadline, the IRS recommends filing your late return as soon as possible to avoid a failure-to-file penalty. The IRS wont charge a failure-to-file penalty when a refund is due. However, there is a three-year statute of limitations on refunds. If you file more than three years after your deadline, then you wont get your money.
Individuals who miss the payment deadline may be subject to a failure-to-pay penalty along with interest charges on the amount due. An exception might be allowed if youre experiencing hardship and file a special extension.
Try to file your taxes as early as possible to avoid missing the deadline. Start gathering your documents as soon as you receive them, and be sure to make an appointment if youre working with a tax professional. Even if the IRS extends the due date, it might be in your best interest to file early, especially if youre expecting a refund.
How Are Tax Identification Numbers Used In The Uk
Tax identification numbers are used to track and monitor the tax accounts of individuals. Although the term TIN Number is not specifically used in the UK in its strictest sense, the HMRC issues two TIN-like numbers to members of the public. The purpose and use of these are described below:
- The Unique Tax Payer Reference : This is a ten-digit set of numbers issued by the HMRC to individuals and businesses who qualify for paying tax returns in the UK. You will find this number on the front page of the tax return . In addition to this, you will find it on a Notice to complete Tax Return or a Statement of Account. It is also printed next to the headings of Tax Reference, UTR or Official Use but the appearance and terms that are used will depend on the type of document issued.
- The National Insurance Number : This includes two letters which are followed by six numbers and then only one of the letters between A, B, C and D. Individuals residing in the UK will be issued a NINO once they are 16 years of age. They will be informed by the Department for Work and Pensions or the HMRC. If you are an employee, you will find this number on your payslip as well as on a Statement of Account issued by HMRC. It links individuals to their records of national insurance contributions, tax payments, student loans as well as social security benefits.
Also Check: H & R Block Tax Estimator
How Do I File For A Tax Extension
Taxpayers who need more time to complete their return can file an extension, which gives them until Oct. 17 to submit. However, you still have to pay the IRS any taxes owed by Monday.
Taxpayers can visit the IRS website’s Free File option to receive the six-month extension for free. After picking a firm that participates in Free File, taxpayers fill out Form 4868 for the extension.
Taxpayers who do owe money will need to estimate the amount. According to H& R Block, taxpayers who don’t pay at least 90% of that amount face a penalty.
How Do You File For An Extension
You can file an extension for your taxes in a few different ways, including the following:
- With the IRS Free File Tool where you can include your estimated payments.
- Pay some of or all of your estimated income tax and when doing so, indicate that the payment is intended to be for an extension.
- File the electronic Form 4868- Application for Automatic Extension of Time To File U.S. Individual Income Tax Return- via your computer or with a tax professional. When filing electronically, make sure to have a copy of your tax returns from the prior year.
- You can also file a paper version of this form-, still being Form 4868.
Dont forget that your request for an extension has to be filed either on or before the date that your original tax payment was due.
Don’t Miss: Best States To Retire In 2021 For Taxes
Justice Department Announces New Rule To Address Stabilizing Braces Accessories Used To Convert Pistols Into Short
Today, the Department of Justice announced it has submitted to the Federal Register the Stabilizing Braces Final Rule, which makes clear that when manufacturers, dealers, and individuals use stabilizing braces to convert pistols into rifles with a barrel of less than 16 inches, commonly referred to as a short-barreled rifles, they must comply with the laws that regulate those rifles, including the National Firearms Act . In April 2021, at an event with President Biden, the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the issue of stabilizing braces.
Keeping our communities safe from gun violence is among the Departments highest priorities, said Attorney General Merrick B. Garland. Almost a century ago, Congress determined that short-barreled rifles must be subject to heightened requirements. Todays rule makes clear that firearm manufacturers, dealers, and individuals cannot evade these important public safety protections simply by adding accessories to pistols that transform them into short-barreled rifles.
On , the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 237,000 comments.
The final rule, as submitted to the Federal Register, can be viewed here: