Filing and Payment Extensions End October 15th: What You Need to Know
The Internal Revenue Service (IRS) allows taxpayers to request an extension for filing their tax returns and paying any taxes owed. The deadline for requesting an extension is typically April 15th, but this year, the deadline was extended to July 15th due to the COVID-19 pandemic. Taxpayers who were unable to meet the July 15th deadline were granted an additional extension to October 15th.
As we approach the October deadline, it’s important for taxpayers to understand their options for filing and paying their taxes. In this article, we’ll explore the various options available and provide updated information based on government resources.
Filing and Payment Extensions: An Overview
A tax extension gives taxpayers additional time to file their tax return, but it does not give them extra time to pay any taxes owed. Interest and penalties will still apply to any unpaid taxes after the original deadline, even if an extension is granted. However, taxpayers who are unable to pay their taxes in full may be able to set up a payment plan with the IRS.
To request an extension, taxpayers must complete and submit Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. The form can be filed electronically or by mail. If the extension is granted, taxpayers will have until October 15th to file their tax return.
Taxpayers who owe taxes for the year must estimate the amount due when requesting an extension. They will be required to pay this estimated amount by the original filing deadline to avoid interest and penalties. Any balance due must be paid by the extended deadline to avoid additional interest and penalties.
Filing and Payment Options
Taxpayers have several options for filing their tax return and making payments to the IRS. The most common methods include:
1. Online filing: Taxpayers can use IRS Free File to prepare and file their tax returns online. The service is available to individual taxpayers with an adjusted gross income of $72,000 or less. Taxpayers can also use commercial tax preparation software, which typically charges a fee.
2. Paper filing: Taxpayers can file their tax returns by mail using paper forms. However, the IRS has been encouraging taxpayers to file electronically in recent years to increase accuracy and speed up processing times.
3. Paying online: Taxpayers can pay any taxes owed to the IRS online using a debit or credit card, a bank transfer, or the IRS Direct Pay service. Taxpayers who set up a payment plan with the IRS can also make payments online.
4. Paying by mail: Taxpayers can pay their taxes by sending a check or money order to the IRS by mail. The check should be made payable to “United States Treasury” and include the taxpayer’s name, address, and taxpayer identification number.
Tips for Completing Form 4868
If you’re planning to request an extension using Form 4868, here are some tips to keep in mind:
1. Be accurate: Make sure to provide accurate information when completing the form, including your name, address, and Social Security number.
2. Estimate your taxes: If you owe taxes for the year, estimate the amount due as accurately as possible. Underestimating your taxes could result in interest and penalties.
3. Keep a copy: Make a copy of Form 4868 for your records and keep a copy of any documents you submit with the form.
4. Submit on time: Make sure to submit Form 4868 by the original filing deadline to avoid interest and penalties.
What Happens if You Miss the Deadline?
If you miss the October 15th deadline for filing your tax return, you will be subject to penalties and interest on any taxes owed. The penalty for late filing is typically 5% of the unpaid taxes for each month or partial month that the return is late, up to a maximum of 25%. The penalty for late payment is 0.5% of the unpaid taxes for each month or partial month that the payment is late, up to a maximum of 25%.
Taxpayers who are unable to pay their taxes in full may be eligible for a payment plan with the IRS. However, interest and penalties will still apply to any unpaid taxes until the balance is paid in full.
Conclusion
Filing and payment extensions can be a useful tool for taxpayers who need additional time to prepare their tax returns or pay their taxes. However, it’s important to understand the rules and requirements to avoid interest and penalties. Taxpayers who are unsure about their options should consult with a tax professional or contact the IRS for assistance.
As of September 2020, the IRS has not announced any further extensions beyond October 15th. Taxpayers who are still unable to file or pay their taxes may face additional penalties and interest. For more information, visit the IRS website or consult with a tax professional.
On September 28, 2012, the Internal Revenue Service announced that taxpayers who received tax-filing extensions will have to file the forms by October 15. If qualified parties did not yet file the forms, the IRS suggested checking their returns for tax benefits that are easily overlooked. The parties should then file their returns electronically through the IRS’s e-file or the Free File system.
The IRS notes that more than 11 million taxpayers who qualified for the six-month extension have not yet filed. October 15 is the last day for most Americans, but some taxpayers still have more time like military members serving in combat zones and people with extensions who were affected by Hurricane Isaac in Louisiana and Mississippi. These taxpayers may have an extension until January 11, 2013.
According to the IRS, taxpayers should check to make sure they have not overlooked any of the following credits of deductions:
•   benefits for low-income or moderate-income workers like the Earned Income Tax Credit
•   the Savers Credit for low-income and moderate-income workers who have placed funds in a retirement plan like a 401(k) or an IRA
•   the American Opportunity Tax Credit and similar tax benefits for college students and parents
The IRS states there a numerous advantages to e-filing, and many taxpayers are even required to file electronically now. Many taxpayers decide to use the brand-name software offered by the IRS if they have incomes of $57,000 or less, but other taxpayers may choose to use online forms that are filled out electronically. Additionally, the IRS recommends that taxpayers choose the direct deposit option. They will receive their refund sooner if they choose direct deposit.
If you cannot make a full payment by October 15, you should still pay what you can to avoid a penalty for late-filing. If you make a partial payment, you’ll still receive interest on the remaining amount.
Visit https://legal-forms.laws.com/ for Free Forms.
Source: Internal Revenue Service
