The tax filing deadline moved from April 15th to July 15th in 2020 due to the pandemic, for which more than 21 million taxpayers took advantage of.
However, if you asked the Internal Revenue Service for an additional extension on filing your federal taxes, your time is nearly up. Here’s a further breakdown of tax return extensions and the upcoming filing deadlines:
Individual and Business Tax Extension Deadlines
| Type | Tax Return | Extension App Form | Extended Return Due |
| Individual taxpayers/ Sole proprietor / Single-member LLC | Form 1040, Schedule C | 4868 or online | October 15 |
| Partnership / Multiple Member LLC business | Form 1065 for business | 7004 or online | September 15 |
| Partnership / Multiple Member LLC owner | Form 1040, Schedule K-1 (partner version) for owner | 4868 or online | October 15 |
| S Corporation business | Form 1120-S | 7004 or online | September 15 |
| S Corporation owner | Form 1040, Schedule K-1 (S corp version) for owner | 4868 or online | October 15 |
| Corporation | Form 1120 | 7004 or online | October 15 |
What Happens if I Miss the Tax Filing Deadline?
Even if you file an extension application, you must pay your taxes before the deadline to avoid late payment penalties and fines. Taxpayers are supposed to pay at least 90% of their tax liability by the regular filing deadline. If you lowball your amount, you may be hit with an underpayment penalty.
The IRS’ late-payment penalty is typically 0.5% per month of the outstanding tax not paid by the July deadline. The maximum penalty is 25%. You may also owe a late-filing penalty of 5% of the amount due for every month your tax return is late. It’s important to note that the maximum penalty is 25% of the amount due.
Taxpayers who don’t file by October 15th can face even higher penalties. If you underpay and fail to file, the IRS will charge the higher fee of 5% until the penalty hits 25% after five months. However, the underpayment penalty will continue to run at 0.5% per month after that.
In some cases, taxpayers who fail to file for a long period of time may be punished with jail time. Fortunately, the IRS would much rather get taxpayers back into the system than prosecute the average person who makes a mistake. Regardless of why you have unfiled tax returns, the first step to resolving your tax problem is to become compliant by filing all your delinquent tax returns. As an expert in Tax Relief services, US Tax Shield can help you overcome your tax burden by helping you file tax returns and settle any tax debt.
How Can I Get an Extension For My Next Tax Return?
If you believe you’ll need more time to do your taxes in 2020 or want to be on the safe side, make sure to file IRS Form 4868 or 7004 on or before the tax filing deadline.
The Tax Extension Deadline is Coming – Schedule a Consultation With US Tax Shield
Dealing with the IRS or State taxing authorities isn’t easy to do alone. If you attempt to file your taxes and are left overwhelmed, our tax professionals can help you navigate your options. Contact US Tax Shield today for your free no-obligation consultation. Contact us today at (877) 829-3535 for a FREE, NO OBLIGATION consultation with a professional tax consultant.
