3 Things To Know About The Tax Extension Deadline
Written by Cooper & Friedman on July 7, 2020
Thanks to the Treasury Department and the Internal Revenue Service, the filing deadline for federal income tax returns has been extended from April 15 to July 15, 2020. This tax extension deadline was in direct response to the COVID-19 outbreak. It’s an effort to offer relief to individuals and businesses who may have been hit hard financially or were unable to file normally due to the pandemic.
Nevertheless, as our new tax day is quickly approaching, for some it is wrought with more confusion than ever before. If you still haven’t filed for the 2019 year, here are 3 things to help make this tax season less overwhelming:
1. You Can Still File An Extension
For individuals that are unable to meet this new deadline, a request for an extension to file your return can be made by filling out form 4868. If granted, this extension allows for an additional 3 months of preparation, with a new deadline of October 15th. Businesses that are in need of additional time must file form 7004. In order to qualify for an extension your request must be filed or postmarked by July 15th.
2. Your Payment Is Still Due
You can get an extension to file their federal tax return. However, this does not allow for extra time to make a payment. In fact, in order for your extension to be valid, you must correctly estimate and pay the tax due. Starting on July 16th, penalties and interest will begin to accrue on any remaining unpaid balances. It’s important to note that the first two quarterly estimated payments for those with substantial taxable income not subject to withholding have also been extended to July 15th. This means that it’s possible for someone to owe half of their estimated taxes for 2020 as well as any taxes owed in conjunction with their 2019 tax return.
3. State Deadlines
In addition to the federal extension, some states have also prolonged their filing and payment deadlines. Both the Indiana Department of Revenue and Kentucky’s Department of Revenue have followed suit, extending individual and corporate state tax returns and payments to July 15th. This extension also includes estimated payments.
For questions regarding the COVID-19 tax extension deadline and relief, Kentuckians can call the taxpayer assistance line at 502-564-4581.
The Cooper & Friedman law firm has been serving the needs of clients in Louisville and the surrounding areas since 1991. We offer free consultations to discuss your case and determine how we can help you. Please contact us at 502-459-7555 to schedule an appointment with one of our experienced attorneys.