The ExtensionTax.com team wishes all a very Happy 4th of July! The IRS issued Notice 2020-134 on June 29, 2020, the automatically extended filing and payment deadline of July 15, 2020, will not be postponed, any taxpayers looking for further relief including those affected by COVID-19, who cannot pay in full should contact IRS for help. The IRS also encourages the affected taxpayers to pay what they can and consider a variety of payment options available for the remaining balance.
“The IRS
understands that those affected by the coronavirus may not be able to pay their
balances in full by July 15, but we have many payment options to help
taxpayers,” said IRS Commissioner Chuck Rettig. “These easy-to-use payment
options are available on IRS.gov, and most can be done automatically without
reaching out to an IRS representative.”
Taxpayers
unable to meet the July 15 due date can request an extension to file until October
15. However, this is not an extension of time to pay. Taxpayers
must estimate their tax liability on the extension-form and pay as much as they
can by July 15 to avoid possible penalties and interest.
Paying taxes is not optional – it’s the law. Taxpayers do have options when it comes to how they pay their taxes. The IRS offers several easy ways to pay taxes. Taxpayers can pay online, by phone or with their mobile device using the IRS2Go app, just to name a few. Some taxpayers must make quarterly estimated tax payments throughout the year. This includes sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file. Individuals who participate in the gig economy might also have to make estimated payments.
Taxpayers should remember a few important things.
An extension of time to file a return is not an extension of time to pay.
Taxpayers should pay any taxes they owe by the March 16 deadline to avoid possible penalties and interest.
The extension request must be filed electronically or postmarked no later than March 16, 2020.
Not yet ready with all the required paper work to report the taxes, and looking to seek additional time with the IRS? then you must file the extension application by the due date of your business tax return. Corporate tax returns (Forms 1120, 1120-A, and 1120-S) or partnership tax return (Form 1065) filers have to report Form 7004 for an automatic 6-month extension of time to file the return by September 15. Do remember to make the deposit on the Form 7004 return, of what you estimate you owe in tax. Form 7004 extension request is due by March 16, 2020.
The IRS strongly encourages people to file their tax returns electronically and choose direct deposit for faster refunds. Filing electronically reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. The IRS says, “Form 7004 does not extend the time for payment of tax.” You must pay taxes due (estimated) by your tax return due date, even if you file an extension application. You will need to estimate as best you can because under-estimating can subject your business to fines and penalties.
Extension Application with ExtensionTax.com:
We’re the leaders in Federal Excise Tax online reporting and started supporting Federal Extension Applications since 2010 to make it more affordable and economic for our excise users and now we’re support many individuals and businesses to report the federal extension application online. Electronic filing provides fast acknowledgement that the IRS has received the return and reduces normal processing time, making compliance with reporting and disclosure of requirements easier. Electronically through http://ExtensionTax.com an IRS Authorized e-File Provider at just $14.99. Simple steps and clear work flow to complete the return faster and receive back an acknowledgement quicker.
We have a dedicated team of support agents to help you through your extension application and address any questions that come-up in the process of efiling. Reach us at 866 – 245 – 3918 or write to us at support@extensiontax.com.
