1. Christine – for IRS and for the 7 or 8 states that I have done tax returns for clients over the years – the extension is a one page form and one only sends in a small piece – perhaps 1/3 of the page- to get an extension.

    For a normal extension – one is suppose to calculate what their income tax will be eventually be and send in any amount which they calculate they will owe over what they have already paid in. When filing an extension if one ends up owing money when the return is finally filed, interest and possibly penalties will be charged. (Extension of time to file is not extension of time to pay.) An extension has to be filed with IRS and separately with one’s state if one’s state has income taxes, and one wants an extension of time to file same also. For most clients I will total the amounts they had withheld from income during the year and the amount they paid in as estimated payments during the year and use that number as their anticipated tax on the extension form unless they have something unusual that year which makes sending in an additional payment towards their taxes needed.

    IN THE CURRENT AUTOMATIC EXTENSION OF TIME UNTIL JULY 15 – it is an automatic extension of time to both file and pay the taxes without interest or penalty from April 15 to July 15 (if one would have incurred underpayment penalty when filing on April 15 that seems to still apply – but not sure). This applies to IRS filings due on April 15 for 2019 corporation and personal income taxes and 2020 estimated taxes. HOWEVER, STATES VARY in what they have decided – NYS has said it will match IRS’s rules on this. New Mexico will have no penalty for filing by July 15, but (according to their website) the tax department does not have the power to change the due of date of payments so amounts paid after April 15 will be subject to interest.

    Of course if one is getting a refund – it is better to file sooner than later and have the refund money to us.

    (And rules change often these days.)

Add a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.