When the COVID-19 pandemic struck the United States at the beginning of the tax season, the federal government quickly pushed the tax deadline to July 15th. But if you're not ready to file yet, can you get another extension on your return?
When the COVID-19 pandemic struck the United States at the beginning of the tax season, the federal government quickly offered an extension on tax returns for all taxpayers without the need for anyone to request the extension. This extension pushed the tax deadline to July 15th—a date that is knocking on our doors as we speak. With this new deadline upon us, you might be wondering if there’s any way you can further extend your tax return. Keep reading to find out.
Current Extensions for Filing and Payment
First, it’s important to note that the COVID relief extension on tax returns, while initially only for filing your return, was quickly expanded to also include an extension on paying the taxes you owe. This not only has allowed many to hold onto necessary funds during the economic struggles that the pandemic has instigated, but also allowed taxpayers to focus their attentions on more important matters than compiling tax forms. However, if you still haven’t filed or paid your 2019 taxes, the automatic grace period given this year is about to expire, and it’s time to take action.
Further Extending Your Return
If you’re not yet ready to file your return, don’t panic. Given current circumstances, it’s understandable that this new deadline may have snuck up on you. Luckily, you still have another opportunity to push back the due date on your tax return. All you have to do is file a request for an extension with the IRS. This is done on Form 4868, and is quite simple to fill out and submit.
This pushes back your due date to file your return to October 15th. While the tax extension typically gives you an extra 6 months to file your return (moving your due date from April 15th to October 15th), please note that the extension deadline has not changed. So, you’ll only be given an additional 3 months to file your return this year if you choose to extend.
It is incredibly important to note that filing for a further extension on your tax return does not extend your due date. While the COVID relief extension given by the government also extended the payment deadline, filing Form 4868 (Application for Automatic Extension of Time to File) does not. As the name implies, this extension only gives you more time to file.
Submitting an Estimated Payment
You will need to submit an estimated payment of the taxes you owe when filing your extension if you want to avoid late fees and penalties. If you’re working with one of our CPAs, we’ll give you our best estimate of what you’ll owe when your return is fully filed so that you can submit your payment with your extension request. If you don’t think you will owe any taxes, or if you’re expecting a refund, you don’t have to worry about this; however, please note that any refund you’re expecting won’t be processed until your full return is filed.
How Can We Help?
Whether you need an extension filed or need your taxes prepared, please give us a call. We can help.