JACKSONVILLE, Fla. – If you haven’t filed your taxes yet, time is quickly running out.
The deadline was already extended to May 17 this year because of the pandemic.
While the Internal Revenue Service is not extending it again, but if you need more time you have the option to file an extension until Oct. 15.
Before filing that extension CPA Joel Chamberlain says to consider a few things.
- Are you owed money by the IRS? If so, why not file your taxes and get your money?
- Do you owe money? If that’s why you’re not filing, you might want to think again.
“That’s a tricky situation because the extension does not extend the time to owe,” CPA Joel Chamberlain said. “And there’s two types of penalties: A failure to file penalty and a failure to owe penalty.”
If you can’t pay by May 17. You have a few options:
- Ask the IRS for an additional 120 days to make payment.
- There’s no fee to set up this agreement
- You will owe interest and other fees until it’s paid off
- You can make a payment agreement online or call 800-829-1040
If you do not believe you’ll be able to pay within 120 days, you will want to set up an installment plan.
This is for anyone who owes $50,000 or less. However, unlike the short-term plan, you’ll have to pay a setup fee for $149, but only $31 if you pay directly from your bank account rather than a credit card.
If you just need more time filing your taxes, requesting an extension takes about 15 minutes and anyone can request one online. You’ll have a few documents to fill out.
Once done you’ll have until five months to file without a penalty.