Warning About Little-Known Tax Day Mistake Which Could Cost You Hundreds of Dollars

Experts are warning that a little-known Tax Day mistake could cost Americans hundreds of dollars. The April 15 federal income tax filing deadline is just around the corner, with millions of people yet to file their returns. Taxpayers have until midnight on April 15 to submit their return to the IRS, but tax experts say Americans may overlook the time zone when it comes to meeting the deadline. That’s because the official time is midnight EST, which means the cut-off is actually up to 3 hours earlier in some parts of the country. The deadline for those in the Central Time Zone is 11 p.m., with Mountain Time Zone at 10 p.m. and Pacific Time Zone on the west coast at 9 p.m. It doesn’t matter if you miss the filing deadline by a few days or a few minutes, late is late in the eyes of the IRS. The failure-to-file penalty is typically 5% of the tax owed for each month or part of a month the return is late, with a maximum penalty of 25%. For example, if you owe $1,000 in taxes, you will pay $50 for every month or partial month your return is late. If your return is more than 60 days late, the minimum penalty is $485 or the entire amount of tax owed, whichever is smaller. If you’re concerned that you may not able able to file your return on time, you should consider filing for an extension.