Some tax preparers would also tack on the 1Q estimated payment to the extension payment as a safety cushion for Lucy just in case the tax liability estimate is wrong. Option 1: If Lucy is confident of her ultimate income tax liability, Lucy could have included a payment of at least $10,000 with her income tax extension to prevent a late payment penalty in October. What Should Lucy Have Done When She Extended Her Return? Lucy feels she needs a box of chocolate after seeing the bill.
IRS 2016 TAX EXTENSION FORM LLC PLUS
In this case, Lucy will owe $10,000 PLUS an applicable late payment penalty based on the $10,000. On OctoLucy finalizes her return and her completed return says that she owes $10,000. They have also not made any quarterly income tax payments. Lucy and Ricardo are retired so they have not had any income tax withholding from a paycheck or any other source during 2019. Lucy forgets to send a payment with her IRS extension on April 15. Lucy and Ricardo extend their income tax return on Jso that the new due date for their tax return (married filing jointly) is October 15, 2020. The penalty is charged for each month or part of a month the tax is unpaid.Įxample: Lucy Forgets to Include an Extension Payment The late payment penalty is usually ½ of 1% of any tax not paid by the regular due date of your return. You still owe IRS payment on July 15, 2020. The income tax extension only extends the amount of time you have to finalize your return (typically to October 15). Be postmarked no later than July 15, 2020.ĭoes An Income Tax Extension Extend the Due Date For Sending a Payment to IRS?.If you send your extension by mail, it must be: Normally, April 15, but for 2020 (relating to 2019 income tax returns) the deadline is July 15, 2020. What is the Deadline for My Income Tax Extension? Nowadays you can get an automatic extension by filing the Form 4868 WITH PAYMENT (more on that below). In the olden days you would have to submit a reason to IRS for extending your income tax return. Your income tax return taxes you on items such as interest, dividends, wages, pensions, social security, and capital gains.įile an IRS Form 4868, which is called Application for Automatic Extension of Time to File US Individual Income Tax Return. Remember, income taxes are paid AFTER the fact, so if you are a filing a return on July 15, 2020, the tax return relates to income you earned in 2019. For 2020, the income tax filing and payment deadlines are July 15, 2020. In a normal year, income tax returns AND payments are due on April 15. Tax planning is largely about the details so be sure to consult with your own tax advisor so they can consider your specific situation! When Are Income Taxes Due?
IRS 2016 TAX EXTENSION FORM LLC HOW TO
This blog post gives an overview of how to extend the due date for an individual federal income tax return (IRS Form 1040).
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