Home / Did You Know…?

Did You Know…?

September 24, 2019 | Weekly Commentary

by Elizabeth Wilson CPA, Vice President – Finance & Tax Services
The October 15 deadline for filing your 2018 tax return is quickly approaching. If you filed a six-month extension request by April 15, then your final return as well as any additional amount owed to the IRS is due. Here are some things to keep in mind between now and then.

  • An extension to file your return does not also extend the amount of time you are given to pay your tax liability. Taxpayers with payments due when filing after the April 15th deadline should expect to pay both a late filing penalty and interest. If you are due a refund, there is good news – the late filing penalty is eliminated. For more information on how the IRS calculates penalties and interest, see the IRS website Tax Topics.
  • If you can’t pay what you owe the IRS in one lump sum, you may qualify for alternative payment options. For example, if you owe less than $50,000 you most likely qualify to apply for an installment agreement which gives you an extended period of time to meet your tax obligations. Refer to the IRS Newsroom for more information.
  • Self-employed individuals that have extended their return have until October 15 to fund their retirement plans. The IRS provides information on the various types of retirement plan options for self-employed individuals at IRS.gov.

As we approach the close of the 2018 tax year, it is good time to contact your financial advisor and/or tax professional to discuss tax planning for 2019. Keep in mind that Q4 2019 estimated payments are due by January 15, 2020.