October’s extended due date is just around the corner. Due to COVID-19, the IRS postponed the original deadline for filing 2019 returns to July 15, 2020. If you could not complete your 2019 tax return by July 15 and filed a request for additional time to file, that extension expires on October 15, 2020. Failing to file before the extension period runs out may cost you late-filing penalties.
There are no additional extensions available (except in designated disaster areas). So if you do not have all of the information needed to complete your return by October 15, call us. This will give us time to explore your options for meeting October’s extended due date.
What If You Don’t Have The Information For October’s Extended Due Date?
If you are waiting for a K-1 from a partnership, S-corporation or fiduciary return, the extended deadline is September 15; September 30 for fiduciary returns. You should probably make inquiries if you have not received that information yet.
Late-filed individual federal returns are subject to a penalty. The penalty is 5% of the tax due for each month for which a return is not filed. That penalty goes up to a maximum of 25% of the tax due. If you are required to file a state return and don’t, the state will also charge a late-file penalty. The filing extension deadline for individual returns is also October 15 for most states.
In addition, interest continues to accrue on any balance due, currently at the rate of 3% per year. This rate is subject to quarterly adjustment.
If our office is waiting for missing information to complete your return, we will need that information ASAP. Ideally, we need it at least a week before the October 15 due date. Please give us a call ASAP if you anticipate complications related to providing the needed information. This way we can better plan how to help you avoid the potential penalties.
Additional October 15 Deadlines
- FBAR Filings
Taxpayers with foreign financial accounts exceeding an aggregate value of $10,000 at any time during 2019 must file a special form. The form is the Financial Crimes Enforcement Network (FinCEN) Form 114. This is the Report of Foreign Bank and Financial Accounts (FBAR). The original due date for the 2019 report was April 15. However individuals have been granted an automatic extension to file until October 15, 2020. - SEP-IRAs
October 15, 2020 is the deadline for a self-employed individual to set up and contribute to a SEP-IRA for 2019. The deadline for contributions to traditional and Roth IRAs for 2019 was July 15, 2020. This was extended instead of the usual April 15 contribution due date due to the COVID-19 emergency. However, no further extension is available. - Special Note: Disaster Victims
If you reside in a presidentially declared disaster area, the IRS will give you more time. Also most states provide additional time to file various returns and make payments for disaster victims.
Please call us if you have questions about October’s extended due date, or any other types of filings and payments.
Watch Out for Tax Penalties
