The Extended October 15 Tax Returns Filing Deadline is Almost Here.
In a few days from now, it will be October 15, 2020, the tax deadline to File 2019 Returns. In case you have been thinking of another postponement, it is not going to come. Remember, the IRS extended the traditional April 15 tax deadline to July 15, but allowed for an automatic extension to October 15.
How Can You Avoid Penalties from the IRS?
What does it mean when I say ‘automatic’ extension? According to the IRS, tax filing and payment deadline of July 15 could not be postponed. Individual taxpayers unable to meet the July 15 due date were asked to request an automatic extension of time to file until October 15
Therefore, this current extension applies to taxpayers that indicated needed an extension. In other words, the IRS only made a provision, and the decision to extend was in the hands of the filer. You see, when in the business of paying taxes, it is important to pay attention to detail. I know many could have missed this fact and thought it’s an extension that the IRS makes on your behalf. But it’s not. The IRS only did it once when they extended for everyone from the April 15 deadline to July 15. Anything after that, you had to make an indication that you wanted to do so.
Paying your taxes in time is one of the tax strategies we listed for building generational wealth. Therefore, failure to adhere to this results in you paying penalties instead of getting tax breaks from the IRS. So, even if you hire your children so that you reduce the money you are taxed by the IRS, filing the same taxes late wipes all these intended gains. But, just to remind you, we desire to see a society full of self-made millionaires through using these tax strategies. Every business can build you generational wealth. Therefore, getting all tax strategies in place increases your chances of becoming wealthy.
Before delving into what you need to know about the extended filing deadline, I would like to divert to why one must take it very seriously, if you weren’t already doing that.
Why is it important to file taxes in time?
- You get your refunds faster – nobody doesn’t like an extra dollar in their account! No one also likes waiting longer to get their refund back in their accounts, especially in this crisis-hit environment. Early filing of your taxes ensures that you get your refund earlier than others.
- You get extra time to make a payment arrangement for what you owe the IRS – The IRS is interested in what you owe them. And, you can only know about this when you file for taxes. As such, early filers know what they owe quickly, and it gives them time to pay before it’s too late.
- Avoid hefty fines from the IRS – The IRS has been fining businesses and people that file their taxes late for hundreds of millions of dollars every year. Falling into this trap can hugely affect your business’ cash flow.
- As mentioned before, it helps you build generational wealth – I know you may be asking how? But early filing eliminates the possibility of a penalty or interest on late payments. It also removes the need to hire extra hands to speed up your filing, if it is done closer to the deadline. You know what extra help means, right? More wages/fees, and it only increases your expenses!
- Early filers know the importance of bookkeeping, and it leads to fewer costs and more profits – For those that file taxes early, they always make sure that their bookkeeping stays in order. It goes without saying that businesses with excellent bookkeeping and accounting in place have a subsequent excellent planning system. They stay ahead of the curve, and they make more profits than businesses that don’t keep their books in order.
So, what do you need to know about this extended tax returns filing?
Even as the October 15 automatically extended tax filing deadline is upon us, there is more you need to know. Businesses and individuals have this last chance to save themselves from ‘bank-breaking’ penalties. In order for that to happen, here is what you need to know.
1. Take everything you do seriously because doing it right allows you to freely build your generational wealth without the IRS breathing down on you – this is your last chance to file the 2019 returns. It helps to know that there must be no room for complacency. Businesses and individuals that are thorough when dealing with tax matters are usually in good books with the IRS – no penalties whatsoever.
2. The extension (to October 15) provided additional time to file the tax return – and not an extension to pay any taxes due – So, if you had taxes due by July 15 and you did not pay anything on that and ask for payment options/plans, you might be having some explaining to do to the IRS. You better find a tax practitioner now and weigh your options.
3. State tax filing may differ across all states, make sure you know the requirements from your current state to avoid losses
4. If you feel like you don’t have money to pay what you will owe the IRS after filing your tax return, just go ahead and file because the not-filing penalty is higher than the penalty for not paying on time
5. In the rush of the things, people are likely to panic and hire unscrupulous tax practitioners – Guard yourself against committing yourself to frauds and cost yourself even more than paying a proper professional in the field.
With that being said, the important thing to remember is that the tax returns filing deadline for 2019 is October 15. Make sure that a few days before that, you are ready to file. It gives you time to fix some mistakes, in case you find out you missed something when you are about to submit. As for those that wait for the final day, there won’t be time to fix errors, resulting in penalties for late filing and payment.