We recommend that you file your tax return as soon as possible and pay as much as possible to avoid further late and/or payment penalties. If you are waiting for a refund, you will not face a late submission penalty. Asking for a tax extension is not a bad thing. There is no penalty for submitting an extension. However, if you don`t pay on time or enough, or if you don`t submit it in full, you can cost it. Due to the COVID-19 pandemic, the federal government has extended the federal tax filing deadline from April 15, 2021 to May 17, 2021. In addition, the IRS extended the deadline until June 15 for residents of Texas, Oklahoma and Louisiana. These renewals are automatic and apply to the quote and payment. Many Americans file their taxes online and never meet with an accountant face-to-face. For these individuals, there is little or no risk of direct spread of COVID-19 through the registration process. However, not all Americans have this luxury, as many people need to meet with an accountant in person. Many free tax preparation services, such as Volunteer Tax Assistance (VITA) and Tax Advice for Seniors (TCE), take place in public spaces and may not be accessible at this time.
Only file a tax extension if you don`t have all the information you need to file a tax return. Are there penalties if I expect a tax refund but don`t file it on time? No, there is no tax penalty for failing to file a tax return or tax renewal if you are waiting for a federal or state tax refund. However, if you wait too long to receive your TAX file, you may lose your refund. Please note that your return must be submitted electronically within three years of the original due date. Taxpayers living abroad who cannot file their taxes before June 15 will still have four months to file their tax returns like everyone else. The filing date is extended until October 15. You must apply for this tax extension by June 15 by completing Form 4868. (Be sure to select the check box on line 8 of the form.) This registration renewal does not extend the time it takes to pay your taxes.
Important: The only way to avoid late penalties is to file or file an income tax return or renewal electronically before the tax date – April 15, 2021 for the 2020 tax year – and in the event of a tax extension, file the tax return electronically by October 15, 2021. Late payment penalties will occur after the tax day deadline of April 15, 2021 for the 2020 taxation year for unpaid taxes. Since late payment penalties are higher than late payment penalties, you should file a return or renewal even if you can`t afford to pay your taxes on time. However, the federal government recommends that taxpayers file their tax returns as soon as possible, especially those who expect to receive tax refunds. Earlier this year, U.S. Treasury Secretary Steve Mnuchin said he wanted these refunds to reach people as soon as possible. This influx of money is a great way for people to cushion the financial impact of the pandemic. Even if you don`t have the money to pay the taxes you owe, you should file a tax extension or tax return electronically. The IRS`s potential fees and penalties for non-electronic filing will be higher than the fees owing. Therefore, pay as much or as little as possible, but file a tax extension or tax return. The IRS will most likely add penalties and/or interest to late payments.
Learn more about your tax payment options. If you filed a 2020 tax extension electronically on eFile.com, but the IRS denied it, we recommend that you simply start with your 2020 tax return. There is no late filing penalty if you receive a tax refund. If you owe taxes, you should file your tax return now to avoid the worst penalties, even if you can`t pay your taxes now. Verify that your tax software supports Form 4868 for tax extensions. Most do. You can simply follow the instructions in the program and see how you can file a tax extension electronically this way. The IRS will send you an electronic confirmation when you submit the form.
Taxpayers who are outside the country may also request an additional discretionary extension of the application for two months. This brings you to December 15, 2021. To get this tax extension, you must send a letter to the IRS by October 15 explaining why you need the additional two months. The IRS will notify you if the request is denied. If you don`t hear from them, you`re good to go. Many state tax filing deadlines may change to reflect the federal deadline. To find your state`s tax deadline and stay up to date with the latest information on the tax deadline, please see our blog post: “IRS announced an extension of the federal tax return and payment deadline.” If you need even more time to complete your federal returns in 2020, you can request an extension until October. 15 by completing Form 4868 using your tax advisor, tax software or the “Free File” link on IRS.gov. File Form 4868 gives taxpayers until October 15 to file their 2021 tax return, but does not extend the deadline to pay taxes owing. Taxpayers should pay their federal income tax owing by May 17, 2021 to avoid interest and penalties. The IRS states that a six-month extension of time for filing Form 709, which is otherwise due on April 15, 2021, can be obtained by: You can also apply for a tax extension by filling out the paper Form 4868 and mailing it (it`s less than a page), but just get proof, that you sent it.