Federal, state, and local tax returns are due! Those who can’t pay should still file on time.

The filing and payment deadline for most 2020 federal tax returns is here. Taxpayers should file or request an extension of time to file and pay any taxes they owe by the May 17 deadline to avoid penalties and interest.

Here are some tips for taxpayers who owe tax, but who can’t immediately pay their tax bill.

Taxpayers should:

  • File their tax return or request an extension of time to file by the May 17 deadline.
  • People who owe tax and do not file their return on time or request an extension may face a failure-to-file penalty.
  • Taxpayers should remember that an extension of time to file is not an extension of time to pay.
    • An extension gives taxpayers until October 15, 2021 to file their 2020 tax return, but taxes owed are still due May 17, 2021.

  • Pay as much as possible by the May 17 due date.
    • Whether filing a return or requesting an extension, taxpayers must pay their tax bill in full by the May filing deadline to avoid penalties and interest.
    • People who do not pay their taxes on time will face a failure-to-pay penalty.

  • Set up a payment plan as soon as possible.
    • Taxpayers who owe but cannot pay in full by the deadline don’t have to wait for a tax bill to request a payment plan.
    • They can apply for a payment plan on IRS.gov.
      Taxpayers can also submit a payment plan request in writing using Form 9465, Installment Agreement Request.

 

Need help filing an extension? No problem. Our team of tax accountants can file your extension, help set you up with a payment plan, and help with any other tax questions you may have. We’re here even after the tax deadline.  Call us today, 717-393-7366!

 

 

FEDERAL INCOME TAX DEADLINE EXTENDED

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.

Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through Loeffler Financial Group. Filing Form 4868 gives taxpayers until Oct. 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

TAX REFUND

The IRS, and Loeffler Financial Group recommend individuals who are expected to receive a refund, to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days. You can follow your refund status at WHERE’S MY REFUND?

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

STATE TAX RETURNS

The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.

Contact Loeffler Financial Group today to file your tax return, or schedule your in-person or virtual appointment here.

Want to learn more helpful tips on taxes, tax planning, and your financial future? Head to our blog to learn more!