Federal Tax Extension ?

[bigdog]

I know folks here are not CPA's (actually maybe some are ?), but thinking of filing a Federal tax extension ?

The deadline for federal taxes was extended to July 15, as a result of COVIT, but I'm reluctant to send my several thousand into the IRS at this time.

In normal times, when when files a tax 'extension' one has to pay fines and penalties, but under COVIT terms, I'm wondering if the Feds are going to apply the same penalties or let it slide ? I'm hoping that before July 15, U.S. Congress, will extend the filing deadline again, out in the future ?

If nothing ,materializes between now and then, I will send in my payment
on July 14th, in order to hold on to my money until the last moment !
Of course I will have my tax filing letter postmarked on the 14th, and pay the extra $ to the U.S. Post office for the confirmed delivery.

Thoughts ?

[joey2665]

Originally Posted by bigdog

I know folks here are not CPA's (actually maybe some are ?), but thinking of filing a Federal tax extension ?

The deadline for federal taxes was extended to July 15, as a result of COVIT, but I'm reluctant to send my several thousand into the IRS at this time.

In normal times, when when files a tax 'extension' one has to pay fines and penalties, but under COVIT terms, I'm wondering if the Feds are going to apply the same penalties or let it slide ? I'm hoping that before July 15, U.S. Congress, will extend the filing deadline again, out in the future ?

If nothing ,materializes between now and then, I will send in my payment
on July 14th, in order to hold on to my money until the last moment !
Of course I will have my tax filing letter postmarked on the 14th, and pay the extra $ to the U.S. Post office for the confirmed delivery.

Thoughts ?

I have not posted in a while and since this has no political connotations I’ll give you my professional opinion. There is talk of extending time of payment but nothing definite. My advice is wait as long as possible to see if there is an additional extension of time to pay without penalties and interest. Your payment doesn’t have to be received by 7/15 just postmarked 7/15. If they do not extend by 7/15 I suggest mailing certificated on the 7/15 to avoid the penalties and interest.


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[TheTimeTraveler]

Assuming the IRS does not give a date extension then be sure to send in what you estimate you actually owe with your extension paperwork at the same time.

As was suggested earlier, mail your check and paperwork via Certified Mail and retain the Postmarked receipt.

Keep in mind that as things stand today you have until Wednesday July 15th, 2020 to file your 2019 taxes, or file your extension request. Some Post Offices close as early as 4:00 pm on weekdays (depending which branch you go to) so do plan ahead for your postmark.

Keep your ears and eyes open for the Government to "possibly" extend the July 15th filing deadline......



.

[phoenix]

Those of you that do estimated taxes for 2020 have to send that in also

[thinkxingu]

Originally Posted by joey2665

I have not posted in a while and since this has no political connotations I’ll give you my professional opinion. There is talk of extending time of payment but nothing definite. My advice is wait as long as possible to see if there is an additional extension of time to pay without penalties and interest. Your payment doesn’t have to be received by 7/15 just postmarked 7/15. If they do not extend by 7/15 I suggest mailing certificated on the 7/15 to avoid the penalties and interest.


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I hope you're well, Joey. Quick question: the only reason to wait until the last minute is purely so you don't have to give up your money, right?

I recently inherited an IRA and, since I'll be taxed on it, I made an estimated tax payment immediately thinking I'd get ahead of it for next year—was that a mistake?

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[joey2665]

Originally Posted by thinkxingu

I hope you're well, Joey. Quick question: the only reason to wait until the last minute is purely so you don't have to give up your money, right?

I recently inherited an IRA and, since I'll be taxed on it, I made an estimated tax payment immediately thinking I'd get ahead of it for next year—was that a mistake?

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Thanks. Not too bad laying low and I’ll actually be a permanent NH resident in two weeks. That’s is correct the only reason for waiting is to hang onto your funds as long as possible.

As far as the IRA I wouldn’t call it a mistake at all. It depends on the amount of the distribution. I assume there was no withholding on the distribution? Assuming 2020 is similar to 2019 as far as your income goes there should be no underpayment penalty but I am conservative and since the market is unpredictable these days and saving rates are low I would have recommended an estimated payment especially if the amount was significant.


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[thinkxingu]

Originally Posted by joey2665

Thanks. Not too bad laying low and I’ll actually be a permanent NH resident in two weeks. That’s is correct the only reason for waiting is to hang onto your funds as long as possible.

As far as the IRA I wouldn’t call it a mistake at all. It depends on the amount of the distribution. I assume there was no withholding on the distribution? Assuming 2020 is similar to 2019 as far as your income goes there should be no underpayment penalty but I am conservative and since the market is unpredictable these days and saving rates are low I would have recommended an estimated payment especially if the amount was significant.


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Congrats on moving to NH! Maybe we can connect at some point. I think I saw Cal Coon yesterday but by the time I realized it (I was high from an amazing day on the ski with my children) I'd entered a NWZ and had to get back home for the night.

In any case, thanks for the clarification. It wasn't a huge inheritance—my father lived much longer than he ever planned—but enough to buy a new ski cash and pay off a bunch of bills!

We were advised to take the distribution without withholding taxes as then we can fill out "Form K's" for the beneficiaries to take care of taxes independently, which would reduce the amount of overall taxes significantly. Does that make sense?

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[joey2665]

I’m sorry for your loss. Yes that’s does make sense in a situation when an estate is involved.

After I settle in it would be great to connect.


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[thinkxingu]

Originally Posted by joey2665

I’m sorry for your loss. Yes that’s does make sense in a situation when an estate is involved.

After I settle in it would be great to connect.


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Good luck with the move—I'm around most of the time from now until August, if you need a hand. Cheers!

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[Descant]

You can do extensions and paymenst online at IRS.gov. No extra postage, you get a confirmation to print out. Just don't wait until midnight when the website can't handle the traffic.

I got "caught" a couple of years ago because I paid my estimated taxes on January 13, and then the rest with my extension in April. The IRS wanted some penalty and interest because I only paid 80% and the rule now is that 90% must be paid by January 15. So, I sent a check for $125. They cashed it as $25 and sent me a bill for $103. Then I sent the $100 again and a letter requesting they waive the penalty and interest. Every 45 days until the next January, I got a computer generated letter saying we're looking into this, please don't write agan. Eventually they waived the $3.00 fee. Probably cost that much every time the computer sent out a "do not disaturb" letter.