In March, the U.S. Department of the Treasury announced tax filing and payment relief for individual and business taxpayers, extending the tax filing deadline from April 15th to July 15th due to the coronavirus outbreak. With the July 15th deadline fast approaching, here’s what you need to know:
If You Need More Time, You Can Still File for an Extension. If you are unable to complete your tax return by the extended due date, you still have the option to file Form 4868, Application of Automatic Extension of Time to File U.S. Individual Tax Return. This extension gives you an additional three months to file – until October 15th. To avoid late filing penalties, you must file the form by July 15th along with the amount you owe.
Pay What You Owe by July 15th to Avoid a Penalty. The automatic extension you receive by filing Form 4868 is an extension of time to file, not an extension of time to pay. To avoid late payment penalties, you must pay the amount you owe by July 15th.
If You Don’t Have the Money to Pay, You Have Options. The IRS offers a short-term payment plan for taxpayers who can pay their tax bill in 120 days or less. If you need more time, installment agreements are available for those whose tax debt is $50,000 or less and can pay their debt within 72 months – and in certain special circumstances, the IRS may allow a longer timeframe.
If you are struggling with tax debt, there may be additional options for resolving your situation. For more information about tax debt relief solutions and to get started with a free consultation with a tax professional, please visit our website.