2020 threw a wrench in the works of just about everything, including tax season. That’s why the IRS moved the income tax filing due date from April 15 to May 17, 2021. A note of importance is that even if taxpayers submitted Form 4868, which allows for an extension to file 2020 tax returns to October 15, the extension does not apply to paying taxes that are due for 2020! If taxes were not paid on May 17, interest and penalties could accrue—if that sounds like you, it’s time to get help from a professional!
There can be differences in the penalties applied to the failure to pay the owed taxes. For example, if someone failed to file for an extension along with paying owed taxes, there would be two penalties accruing. It’s also important to note that the penalty for failing to file is more substantial and accrues faster than the penalty for failing to pay. The bottom line is that even if someone neglected to pay their taxes in May and file for a tax extension, it is more important than ever to take action right now!
Professional CPA services stay up-to-date on tax guidelines, and can even help out if taxes returns are still owed and haven’t been received by the taxpayer! Even if someone feels that they have dug themselves into a financial hole, help is still available and should be gotten. Call a reputable CPA service and find out how they can help to get you back on your feet and moving towards a healthy financial future!