The individual tax deadline of July 15 is fast approaching. Here is what you need to know!
The individual tax deadline of July 15 is fast approaching. Here is what you need to know:
On June 29, 2020 the IRS announced that the tax filing and payment deadline of July 15 will not be postponed.
1. What happens if I do not file on time?
There is no penalty for filing a late tax return after the deadline if you are set to receive a refund. However, penalties and interest are due if taxes are not filed on time or a tax extension is not requested AND you owe tax. To avoid this problem, file your taxes as soon as you can because the penalties can pile up quickly. The failure-to-file penalty is 5% of the unpaid tax added for each month (or part of a month) that a tax return is late.
2. Can I file for an extension?
If you are not on track to complete your tax return by July 15, you can file an extension to give you until Oct. 15 to file your tax return. Be aware that it is only an extension of time to file-not an extension of time to pay taxes you owe. You still need to pay all taxes by July 15 to avoid penalties and interest. So even if you plan to file an extension, a preliminary review of your tax documents is necessary to determine whether you need to make a payment when the extension is filed.
3. What are my tax payment options?
If you are not able to pay the tax you owe by July 15, the balance is subject to interest and a monthly late payment penalty. There is also a penalty for failure to file a tax return, so you should file timely even if you can’t pay your balance in full.
You have many options to pay your income tax.
- You can mail a check
- Pay directly from a bank account with IRS Direct-Pay
- Pay with a debit or credit card (for a fee),
- Apply online for an Online Payment Plan.
- Or you can also apply for a payment plan by phone or by mail.
No matter how you pay your tax bill, it is important to finalize your tax payment arrangements by the end of the day on July 15 to avoid interest and penalties.
For more information about filing your taxes, making payments, and payment plans (including installment agreements, contact us at 1.800.867.6829