Remember to File for an Extension, if you need it!
- BR Accounting And Tax Service
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I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.
I’m writing this to remind taxpayers that if you can’t to file your tax returns by the date the returns are due, to please file for an Extension. Please keep in mind, that an extension to file, does not grant more time to pay the tax you believe you will ultimately, owe. You want to make sure you at least file the automatic extension for time to file (Form 4868), because the penalty for not filing (and not filing an extension), can be as much as 25% of the tax owed. The failure to file penalties are 5% per month for the first five months that the returns are not filed, plus interest, plus the failure to pay penalties.
There are three ways the IRS says you can file a tax extension:
Option 1: Pay all or part of your estimated income tax due and note the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System, or using a credit or debit card.
Option 2: File Form 4868 (PDF) electronically by accessing IRS e-file using your tax software or by working with a tax professional who uses e-file. Make sure you have a copy of your 2019 tax return.
Option 3: File a paper Form 4868 and enclose payment of your estimate of tax due. Make sure it's postmarked on or before May 17.
Afterwards, the sooner you file the returns, the better. Whereas compliance is considered both filing all returns when due and paying all taxes related to the returns by the date that the payments are due. Partial compliance would go a long way in regards to dealing with various representatives from tax reporting agencies.
If you feel as though you may be one of the taxpayers having trouble with staying or becoming compliant with your tax obligations, with the regulatory authorities, We can help!. Perhaps you are one of the taxpayers who is owed a tax refund. You only have three(3) years from the original due date of the tax return to claim this refund. No matter what, after the three(3) years, “Poof” your refund is gone forever.
According to the Deputy Commissioner for Small Businesses for the IRS, this might be the worst time to try and “fool” the IRS and attempt avoid compliance. They just have too many tools at their disposal (his words), so don’t put off filing your returns for another year. Feel free to contact us if you have any questions.