The COVID-prompted tax extensions offered a much-needed break for those harmed by the economic fallout of the pandemic. Unfortunately, the extension was never intended to last forever — and for many people, it’s finally time to pay up.
Many taxpayers risk missing the upcoming deadline due to sheer confusion. This could result in significant penalties, which may prove especially devastating in light of COVID’s economic strain. Below, we offer helpful clarification on the upcoming tax deadline:
The 2020 Tax Filing and Extension Deadlines
During the early days of the pandemic, the IRS granted taxpayers the opportunity to skip the usual April 15th tax deadline, and instead, delay filing until July 15th — consequence-free. Not everybody filed their taxes at that time, however.
This COVID-related extension was accompanied by the typical extension, in which those unable to meet the July deadline filed IRS Form 4868. The extension was not available to those who neglected to file this form. Those who did complete the form, however, are expected to file by October 15th.
What If I Can’t File By October 15?
Unfortunately, unless you face extraordinary circumstances (such as residing in a combat zone), you will not be able to delay filing beyond October 15th without being assessed considerable fees. These could include a “failure to file” penalty. Depending on how long you take to file, this could ultimately total 25 percent of your tax bill. It’s also possible for “failure to pay” penalties to increase if you miss the October 15th deadline.
As October 15th approaches, the need for a tax solution becomes increasingly urgent. Resist the impulse to procrastinate, and instead, work with the Highland Tax Group to get your IRS situation in order. Contact us today to get started.