Tax Extension Questions
2020 has been a wild ride so far! While protecting your health, did you forget to file your taxes? Have no fear, because CPA Nerds is here to remind you of a few important things.
In this article, we’ll answer a few important questions pertaining to tax filing deadlines from customers.
Income Tax Due Dates
Mary: Hi CPA Nerds. Have the due dates for my tax return payment changed this year?
CPA Nerds: Hi Mary. The due date for individual and corporate income tax payments (if you owe) has changed to July 15. Due to this date changing from April 15, there is no additional extension to pay if you owe the IRS, if you don’t have your tax return completed yet and you expect to owe, you need to estimate how much you will owe and pay it to the IRS by July 15 in order to avoid penalties. Contact your CPA Nerds to help prepare that estimate if you are unsure. Avoiding unnecessary payments to the IRS makes us happy.
First and Second Quarter Estimated Payments
John: I have a question about fees. Will I see penalties if I haven’t made my First and Second Quarter estimated payments?
CPA Nerds: John, this is a popular question right now. The IRS released Notice 2020-23 to the public in March; this document says First and Second Quarter income taxes that need to be paid are extended to July 15. If you pay both by this date, you will not receive a penalty. We don’t believe this will be extended further.
File an Extension
Jen: Is there any way I can file an extension?
CPA Nerds: Jen, if you need more time to file your taxes, we can file an extension on your behalf to extend the due date from July 15 to October 15. However, this is an extension to file, not an extension to pay. Contact us so we can help you calculate an extension payment to be paid by July 15 in to avoid penalties.
Any More Questions?
Mark: Thank you for the continued resources to help me file my taxes. What if I have additional questions.
CPA Nerds: You can always contact us for further questions or help. You can also review the IRS’s website for this topic.