The tax extension deadline for the 2019 tax season is approaching.
Be advised, Tuesday, October 15, 2019, isn’t just the extension deadline. It’s also the last day to e-file your tax return.
However, if you didn’t file an extension on the April 15 deadline, you may be subject to penalties depending on if you owe taxes to the IRS or not.
Can I still file an extension?
Unfortunately, you can no longer file an extension. The last day to have filed an extension was April 15, 2019; the original tax deadline. By filing Form 4868 (Application for Automatic Extension of Time To File U.S. Income Tax Return), the IRS grants you an extra six-months to file.
That being said, for tax returns who have an outstanding tax due to the IRS, that haven’t been paid, will be subject to penalties.
Do you have a tax due to the IRS?
Keep in mind, an extension does not mean that it extends your time to pay the IRS. Many taxpayers are not aware that if you have a tax liability to the IRS, you MUST have estimated and paid at least 90% of your tax due to the IRS on April 15 with your extension.
This prevents being subject to the failure-to-pay penalty. That being said, you must pay any remaining balance by the extended due date.
As a reminder, taxpayers who are receiving a refund will not face any penalties.
Penalties
For the 2019 tax extension and e-file deadline, beware of the following:
- Failure-to-file penalty: 5% of your tax due per month (Up to 25%) plus interest
- Failure-to-pay penalty: 0.5% or 1% of your tax due per month (Up to 25%) plus interest
- Both penalties for failure to file and pay is 47.5% of the tax due (22.5% late filing and 25% late payment)
- After 60 days late: Minimum penalty of either the lesser of $210 or the full amount of your tax due
The IRS calculates interest by the federal short-term interest rate plus 3%. To learn more about IRS penalties, click here.
Set a reminder for the deadline
After October 15, 2019, you must paper-file your tax return. This means you have to print, sign and mail your tax return along with copies of your income statements.
Avoid penalties and file now!
We’re here to help. All you need to do is create an account, enter your tax information, and submit your account for e-file!
