If You Are Requesting a Tax Extension, You Still Have to Pay by July 15th.
Since tax day has been moved from April 15 to July 15, this means that the renewal application deadline has been postponed as well. This means you have until July 15, 2020 to request an extension for filing your 2019 tax return.
But before you submit your renewal request, keep in mind that when you are granted an renewal, you get a later date to file your tax returns, not a later date to pay them.
It’s okay if you’re expecting a refund or break even. But if you owe taxes, you cannot restrain yourself thinking that applying for an extension will buy you time to raise funds.
You don’t need to know how much you owe, to the nearest penny – a rough estimate is enough. When you submit Form 4868 or request an extension electronically using Free File software, you are reporting any amount you have already paid and what you think you still owe.
The renewal request is important because you can’t just hide from the IRS until you get together and can file and pay all at once. The IRS collects fines for not completing and paying taxes.
The IRS indicated in a recent notice that if you have already mailed your 2019 tax return that has not yet been processed, you do not need to resubmit or contact the IRS. You can wait a while to process your refund as the processing centers were closed in the midst of the pandemic, but your refund will be credited on time.
The renewal request will also not help you get your coronavirus relief payment faster. People who have a 2018 declaration on the IRS will receive a benefit payment based on that declaration.