HFA Breaks Down the New IRS Tax Extensions
Updated: May 14, 2020
The original tax deadline of April 15 may have past, but there is still time to file an extension. HFA, breaks down everything you need to know about the federal income tax extension.
The IRS has extended deadlines to file and pay federal income taxes to July 15, 2020. Individual tax filers, regardless of income level, can use Form 4868 to request an automatic tax-filing extension. Filing out this form gives all taxpayers until October 15 to file a return. To receive the extension, the IRS notes that you must estimate your tax liability on this form and pay any amount due.
A few facts from the IRS: An extension of time to file your return does not grant you any extension of time to pay your taxes; you should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties, and be sure to file your extension request no later than the regular due date of your return.
"Extensions can be filed up until July 15, 2020 without any issues," according to Craig R. Johnson, CPA, Chairman of the HFA Executive Committee and Partner in HFA's Tax Department. "For those who have yet to file, we encourage you to continue gathering all of your records and get them to your tax professional as soon as possible."
According to the IRS website, you can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a credit or debit card. You will not have to file a separate extension form and you will receive a confirmation number for your records.
The IRS also notes that businesses and corporations can file an application for an automatic extension of time to file certain business income tax, information or other returns. Corporations who are expecting a net operating loss carry-back can also file an extension. "Due to new regulations in the handling of net operating loss carry-backs, this extended time should be used wisely in determining the proper steps taken, either carry-back or carry-forward, to maximize the benefit from the NET Operating Loss," Johnson added.