Since the June 15th deadline is right around the corner, here's some important info about extensions.
A tax filing extension regards ONLY the tax form and NOT the taxes themselves.
If you’re confused by the system, don’t worry – you’re not alone. Let’s clear up this commonly frustrating issue. In a normal year, your personal tax return (1040) is due on April 15th. That’s a normal year – the last two years have had some special circumstances, but even with the special circumstances these principles apply. When you file “an extension” for your personal tax return, you are extending ONLY the deadline for the form, the tax return, the paperwork – whether electronic or not. Your taxes in a normal year are still due on the original deadline. Yes, even after filing “an extension,” your taxes are still due at the original due date.
So, in a normal year, if you extend your return, your return that was due on April 15th is now due on October 15th, while your taxes are still due April 15th. It’s an extension to get your paperwork in order, not an extension to pay the government.
It’s a subtle but critical detail. If you believe that you’ll owe on your tax return, filing an extension will not extend your time to pay and you will accrue interest on your taxes due from the original date of filing (April 15th in a normal year) to the day you pay your taxes.
If this feels like a cruel joke, we understand. The best way to handle paying your taxes on time – extension or no extension – is to engage a CPA for tax projections. Our expert team of CPAs use the IRS safe harbor rules and your current financial data to help you estimate what you will need to pay in and by which due dates.
Don’t struggle through the red tape alone. Call in for a CPA consultation.
In 2021, there are some special circumstances that have prompted the government to grant extensions to file AND to pay to certain taxpayers. For your personal tax return (1040) the new filing date is May 17th. This applies unusually to both the filing of the return and the payment of taxes normally due on April 15th. In addition to the above relief, Texas, Oklahoma, and Louisiana have been granted until June 15th to file their personal tax returns (1040) and, again, to make their tax payments normally due on April 15th. This is a special automatic extension due to the devastation of the unprecedented winter storm in February 2021.
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