If the effect of coronavirus pandemic makes you left unprepared for paying your taxes this year, then you can apply for a penalty-free extension by 91 days by the US treasury. Once you apply for the extension, you will have until July 15 to file your tax returns. Individuals, corporations, non-corporation, trust, and estate can seek tax extension.
Besides the federal government, the state tax agencies also looking forward to moving past the deadline of April 15 for helping people and businesses affected by the coronavirus outbreak.
The new Federal tax deadlines
The news of tax filing extension comes from Treasury Secretary Steven Mnuchin, who on a press conference confirms about the three-month extension to the abovementioned taxpayers. When first announced, the extension was only limited to taxpayers with $1 million or less and businesses with $10 million or less. However, the government has lifted the monetary limitation as now every taxpayer can avail of the three-month tax extension.
Penalty:
As long as you meet the July 15 payment deadline, they won’t face any penalty.
Federal Tax Extension for individual taxpayers:
If you opt for July 15 extension, then you do not have to go through any qualification procedures like filling forms or contacting the IRS. Meanwhile, for requesting an extension beyond July 15 you have to file form 4868 with the help of professional accountants in Melville, accounting software or at IRS.gov. However, to avoid penalties you have to pay the estimated taxes by July 15 and file the tax returns by Oct 15.
Advantage of filing federal tax return before April 15
Currently, the IRS is open and processing tax returns. IRS said that they are issuing most tax refunds within 21 days. Therefore, the sooner you file, the sooner you will receive your tax refunds.
Deferring Payments for Businesses
Businesses can also extend their tax filing date to July 15 without paying any interest or penalties. For extending the tax filing beyond July 15, businesses have to file Form 7004. However, businesses have to pay the estimated taxes by July 15 for avoiding penalties.
If you need help with filing tax, then feel free to contact Finxtreme’s top accountants in Melville for prompt and affordable service.
