Deadline Extension For Tax Payment – What You Need to Know
Almost half of all taxpayers will need a Deadline Extension for Tax Payment at some point during the year. The deadline for this type of extension has passed for residents of Maine and Massachusetts. If you are one of them, now is the time to file. Here’s what you need to know about applying for an extension. Keep in mind that the deadlines for filing an extension may change each year. You should plan accordingly.
The Internal Revenue Service and Treasury Department are providing special tax relief due to the COVID-19 outbreak that has affected businesses and individuals. The IRS has extended the deadline for filing and paying federal income tax by 90 days, to July 15, 2020. You can apply for an extension if you owe up to $1 million in federal tax, and if you’re self-employed or are an entity that is not a C-Corporation.
If you’re not eligible for an extension, you don’t need to be impacted by COVID-19. In order to receive an extension to July 15, 2020, you simply need to file Form 4868 before the deadline. Using this extension will give you an extra month to file your return, but it doesn’t extend the due date for tax payments. In fact, you can defer as much tax payment as you like until October 15 if you need it.
There are also other reasons why you need an extension. If you owe more than you have to, you may qualify for an extension if your income isn’t as high as you thought it would be. For instance, if you make less than you earned in the previous year, you may want to consider making more money in order to make the full amount of your estimated tax payments. This is especially true if you’re self-employed.
The most common way to request an extension is to submit a form 4868. You can mail it or use electronic means. The envelope that you mail in must be postmarked before the regular due date. Be sure to get a receipt with your confirmation number. You must be aware that private delivery services cannot deliver to the IRS P.O. box. It is best to get a confirmation number before submitting a form.
If you have lived abroad for the past year, a four-month extension may still be available to you. This extension will extend your due date to October 15, 2022. You must request the four-month extension at least two months before the two-month extension expires. You must also fill out Form 4868 and check the box on line eight if you are living abroad. However, this extension will not extend the time you have to pay the tax. The IRS will let you know if you’ve been denied.