The Final Countdown

If you’re the band Europe, The Final Countdown is your biggest musical hit of the 1980’s, and the 18th of April is just another day for you.

If you’re an American taxpayer however, the final countdown takes on a whole new meaning. You now have less than a week to file your 2015 tax return.

Uncle Sam is not a patient man when it comes to taxes.

The penalty for filing late will typically equal 5 percent of the unpaid taxes you owe for every month or part of a month you put off filing your return, up to a 25 percent cap.

Even if you can't afford your taxes now, it's best to, at the very least, file your tax return on time. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date.

Another option filers have is called an extension, which grants taxpayers up to six additional months to file.

It’s important to remember that the extension is an extension of time to file, not an extension of time to pay. Even so, the failure to pay penalty is a lot less than the failure to file penalty. 

The days may be growing longer as spring rolls in, but the time to file is growing shorter. With only a few days left to file, make sure you put them to good use.