Chicago Indian Community - ChicagoIndian.com
| | |
 


 

File on Time - Even if You Cant Pay - May 21

Money
Contributed by : Mukesh Makker
Add To My Favorite
Share With Your Friends



Generally, taxpayers should file their tax return by the deadline even if they cannot pay the full amount due, but if you can't there are several options. Let's take a look at a few scenarios:

1. An individual taxpayer owes taxes, but can't pay in full by the deadline. If this is the case, file a tax return or request an extension of time to file by the May 17 deadline. If tax is owed and a return is not filed on time - or an extension is not requested - the taxpayer may face a failure-to-file penalty for not filing on time.


Taxpayers should remember that an extension of time to file is not an extension of time to pay. An extension gives taxpayers until October 15, 2021 to file their 2020 tax return, but taxes owed are still due May 17, 2021.

2. File an extension. To file an extension, taxpayers must do one of the following:



  • File Form 4868, Application for Automatic Extension of Time, through their tax professional

  • Submit an electronic payment with Direct Pay, Electronic Federal Tax Payment System or by debit, credit card or digital wallet and select Form 4868 or extension as the payment type.


3. Set up a payment plan as soon as possible. Taxpayers who owe money but cannot pay in full by May 17 don't have to wait for a tax bill to set up a payment plan. Instead, they can:



  • Apply for a payment plan on IRS.gov; or

  • Submit a payment plan request using Form 9465, Installment Agreement Request


4. Pay as much as possible by the May 17 due date. Whether filing a return or requesting an extension, taxpayers must pay their tax bill in full by the May deadline to avoid interest and penalties. People who do not pay their taxes on time will face a failure-to-pay penalty. The IRS has options for taxpayers who can't afford to pay taxes they owe.


Don't wait. If you need assistance filing a tax return for 2020, please call the office as soon as possible.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.

Website: https://taxprofessionalsnw.com/newsletter.php#6

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

My Business:
Accounting and Tax Professionals, Inc
Bellevue

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

International Cricketing Legends to play for Friendship Cup UAE in Sharjah
IMPORTANT TAX CHANGES FOR INDIVIDUALS AND BUSINESSES - Jan 2020
View All Articles

Featured Contributors


Rima Arora

Darshan Goswami

Tahmina Watson
Tahmina Watson

Anu Peshawaria

Ananya Kiran

Vasudha Sharma
Vasudha Sharma

Christine Dunbar

Shruti Sadolkar

Vivek Wadhwa
Vivek Wadhwa

Latest Articles

Rishabh Sharma and Roshni Kashyap's love story film 'Ek Naradham' by Staff
Refurbished Water Wells Save Lives in Rural Indian Villages by Tom Webber
Official trailer released for Akshay Kumar starrer Prithviraj ahead of June 3rd premiere by Staff
Child Artist Rishabh Sharma making a comeback in Bollywood with a love story film 'Naradham by Staff
Actress Ameesha Patel and Sandip Soparrkar celebrates World Dance Day by Staff
View All Articles