There are two things that are certain in this life. Death and Taxes… Since you know you will need to be paying your taxes, you MUST always know when the last day to file taxes will be each year.
They assume that with the millions of taxpayers, the IRS may not notice if they neglect it. However, this is far from the truth. Just so you know, IRS monitors all transactions that individuals and organizations make.
This means that failure to file your taxes might lead to different consequences like interest and penalties. For this reason, it is important to know the last day to file taxes in United States IRS.
When is the last day to file taxes in 2020?
April 15, 2020 is the deadline to file your 2019 federal income tax. This 2020, this due date is applicable to residents of Massachusetts and Maine.
Last year, the taxpayers in the two states had until the 17th of April for filing their tax returns for 2018. This is because Patriots’ Day, which is an official holiday in these states commemorating the battles of Revolutionary War, fell on the 15th of April 2019.
Usually, it means that residents of the two states can get one more day to file their taxes.
But, the District of Columbia celebrates Emancipation Day on the 16th of April 2019. This holiday commemorates the end of Washington, D.C.’s slavery.
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With April 16 being a legal holiday in D.C. and it is not possible for IRS to require filing of tax returns during a legal holiday, Massachusetts and Maine’s tax payers got another extra day for filing last year.
Patriots’ Day this year falls on April 20 so residents of the two states will no longer get extra time for filing their taxes this 2020.
Even though you can always prepare the tax return earlier, the start of processing of returns will be on January 27, 2020.
This gives taxpayers enough time for beating the deadline provided that they don’t procrastinate or wait for the last minute.
For those who expect a return, it is best to e-file the 2019 tax return and choose to deposit the refund straight in the bank account to receive it sooner.
It is faster for IRS to process electronic refunds and returns than they can handle paper checks and returns.
What Happens If I Miss Tax Deadline?
Before anything else, it is important to remember that failure to pay your taxes is different from failure to file your taxes.
If you failed to file the tax return on Tax Day but you don’t really owe anything, there is no need for you to worry about penalties.
On the other hand, if you failed to file your tax return, you will end up missing out on the refund that you are entitled to in the first place. After 3 years passed, you will lose your right to get a refund.
If you weren’t able to file a tax return the previous year and you are entitled to a refund, it is best to move forward.
The situation might turn a bit unpleasant if you owe the government money.
The penalty for failure to pay is equivalent to 5% of taxes that are not paid for each month that the return is late, with cap of 25% of unpaid taxes. There is also a minimum fee if you are late for 60 days. It is 100% or $135 of the tax, whatever is less.
The penalty adds up fast if you fail to file the tax return.
A failure to file penalty can be avoided by filing for extension with the use of Form 4868. It allows you to file the tax return until October. But, this should be filed by midnight on Tax Day.
If you think that you won’t make it to the deadline, an extension should be filed as soon as possible. However, while you can buy some time for filing the tax return, this doesn’t give you additional time for paying the taxes you owe.
Can I Still File My Taxes After Deadline?
YES, you sure can!
If there is something goverment loves, it is getting money from the people, no matter when. File your taxes but don’t forget that you can actually file an extension with the IRS tax extension form.
If it is already too late and you already missed your deadline for filing your taxes, it is recommended to take action at the soonest time possible. Below are a few things you can do to lower the costs you may accrue during this situation:
File the tax return ASAP
File your tax return as soon as you could if you missed the deadline. This will lower the hefty penalty associated with failure to file.
Apply for installment plan
You might be qualified for an installment plan with IRS even after your deadline. If it is not possible for you to pay your entire bill, you can apply for an installment plan and make payments after that.
Pay whatever you can
Try to pay as fast as you could as much as possible. Direct payments are accepted by the IRS.
Plan a system for the coming year and the last day to file taxes
You will be able to save yourself from the same problem the next year if you create a regular system for organizing and collecting the necessary documents.
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You can also take advantage of different tax prep software programs to help you in filing your taxes even after your deadline.
Can I File an Extension on My Taxes?
You can file an extension with IRS on paying your taxes using Form 1127: Application for Extension of Time for Payment of Tax.
However, there are strict legal requirements here.
- The IRS must receive Form 1127 before or on the date of your tax is due.
- You have to demonstrate that paying your tax when it is due will cause undue hardship. A simple inconvenience won’t qualify as a hardship.
- You need to provide complete statement of your liabilities and assets at the end of the previous month together with the itemized list of cash you spent and received for the 3 months immediately before you send your request for payment extension.
- You have to show that paying your tax when due will result in substantial financial loss and that you don’t really have the money or you cannot raise cash through borrowing or by selling a property.
Once approved, payment extensions are often limited to 6 months. The IRS also requires an acceptable form of security before they grant you the extension of time for payment.
This security could be in the form of notice of lien, a bond, mortgage, or any other means which depends on individual circumstances.
Can I File a Second Extension on My Taxes?
You knew that you cannot make it to the deadline of filing your tax last April so you decided to request an extension. However, the second deadline already came and went. Is it possible to file for a second extension?
The quick answer is no, you cannot file for a second extension on your taxes.
But, everything is not lost.
Even though you were not prepared when the 15th of October came around, it is still possible for you to set things straight with IRS and save yourself from the fees and penalties they impose.
Around 15 years ago, extension can be filed on April 15 giving you until the 15th of August to file the taxes. If necessary, you can then submit a second extension, giving you until the 15th of October. This interim extension, however, was gone in 2005 together with Form 2688.
Today, you can just request for a single extension. You can use Form 4868 before the 15th of April to file for the 6-month extension that ends on October 15. But, this is all you will get. No more extensions are available for you to use after this. You just need to look for a way for filing your taxes and paying whatever you owe to the IRS.
A tax extension will obviously extend the time for filing your tax return. You will get 6 more months to prepare all documents and fill out the necessary forms.
This may seem like plenty of time but it can pass you by quickly so you need to use it to the fullest.
Ensure that the Form 4868 is sent by your original deadline but it is better if you can send it as early as you could or right when you know that you cannot make it to Tax Day.
While you will get 6 additional months for filing, you will not get any extension to pay your taxes. Your payment will still be due on April 15. Failure to pay by then will result to accruing interest on anything left. If you failed to pay any at all or you have no plans to pay, you can get hit with failure to pay penalty.
Also, if you don’t file for extension and let Tax Day pass, you will also get failure to file penalty. This is harsher than failure to pay.
Last Day to File Taxes with an Extension?
Before you file for IRS tax extension, it is important to ensure that this is really the best choice for you. There are several common reasons why you might have to push back your deadline:
- Unforeseen life event
- More time required for tracking down missing or misplaced tax documents
- Life has been quite busy
If you cannot complete the federal tax return by the deadline in April, you have to file for an extension with IRS so that you can avoid potential penalties for late payment or late filing.
Filing this extension lets you push back your deadline for up to 6 months to the 15th of October 2020.
It is important to remember that an extension will only push back the date to file your tax documents. However, it won’t give you additional time for paying your owed taxes.
If you think that you are going to owe cash this year, you have to make an estimate of the amount after you file for extension and pay once the April deadline comes.
You can file for extension right until Tax Day. It means that an individual can file for tax extension up to the 15th of April. This is also applicable for businesses.
Partnerships and S corps can get an extension right until March 16 while April 15 is the last day for filing for extension for C corps.
Here is an overview of tax deadlines in 2020:
- January 15, 2020 – estimated quarterly payments
- January 31, 2020 – deadline for filing Form W-2 and Form 1099-MISC Copy A
- February 17, 2020 – deadline for filing Form 1099-MISC Copy B
- February 28, 2020 – deadline for filing Form 1099-MISC Copy A
- March 16, 2020 – due of tax returns of partnership and S corporation
- April 15, 2020 – estimated quarterly payments, due of individual tax returns, corporation tax returns, and state tax returns
- June 15, 2020 –estimated quarterly payments
- September 15, 2020 – estimated quarterly payments
- November 1, 2020 – start to make tax moves
- December 31, 2020 – deadline of tax moves and setting up solo 401 (k)
Filing your tax returns is something that you cannot simply take for granted. As a responsible citizen, this is one of the responsibilities that you have to do. While life can sometimes feel too busy or too hectic, filing your taxes shouldn’t be pushed back to your least priorities.
So, before you suffer from penalties and interest imposed by the IRS, make sure that you file your taxes as soon as you could.
While you can always file for extensions, it is best that you don’t wait until the last minute before you make a move.
Know your deadlines and save yourself from unwanted consequences.