New Tax Rules Mean Mailing Your Return Could Cost You

Is your U.S. tax return already in the mail? That may be a good thing, depending on how early you sent it. Because of changes in the post office and also at the IRS, there's potential that putting your tax return in the mail today, may not guarantee that your tax return will be post marked on time. 

According to axios.com,
‘Mailing your tax return this year comes with a key change: A new postmark rule is redefining what qualifies as "on time."
The IRS treats the postmark date — not the day you dropped the envelope into the mail — as proof of filing, meaning delays in postmarking could trigger penalties even if you sent your return on time.’ 

The US postal service doesn't mark a piece of mail as sent until it is run through the processing system at a mail sorting facility, not when you drop it into your mailbox. For us here in Wenatchee, that means your mail will not be postmarked until it reaches Spokane and runs through that processing facility. 

Plan ahead

The old way it worked was that a postmark was applied to your mail, usually the day that you mailed it. Not so much now. 

It's very likely that a tax return that you send in the mail on April 15th. will not get a postmark until April 16th. Congratulations, you're paying a penalty now.  

According to the IRS, that penalty is traditionally 5% per month (Minus any timely payments or eligible Credits) for each month or partial month that the return is filed late. 

E-filing is best

If you're mailing your tax return, you need to build in extra time. Of course, it's too late to plan that now, but hey, maybe next year. Or you could also file online which is a whole lot quicker. E-filing still remains the most reliable way to file your taxes, plus it creates an immediate timestamp. 

Your other option is to ask for a six-month Extension, but that just puts off the inevitable Pain. 

I'm not bragging mind you, but I got my taxes filed about 3 weeks ago, and I paid my fair share. It still hurt, but it's good to have it over and done with.