Today is the deadline for Americans who were granted an extension in April to file their 2023 taxes. KKOS Lawyers founding and senior partner Mark Kohler joins Wealth! to break down what taxpayers need to know.
"This is a huge day because 20 million Americans filed an extension and bought time. But then, in today's economy, so many people are struggling financially and maybe can't pay. And so they think, 'Well, if I don't file, I don't want to let the IRS know I owe.' That's the worst thing you can do," Kohler explains to Brad Smith.
"The penalty is ten times more for not filing than not paying. And a lot of people don't realize that. So it's better to just let the IRS know, 'I owe you, but I can't pay.' And then we work through options to deal with that."
He notes that filers can work with the IRS (Internal Revenue Service) to get on a payment plan to help them afford their taxes. For those who have side hustles, he recommends working with tax advisers to identify opportunities for savings.
Watch the video above to hear some of Kohler's best tax strategies for family businesses.
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This post was written by Melanie Riehl