For most people, the
deadline for paying taxes on income earned in 2019 will be April 15, 2020. If
you have a more complicated return or just need extra time collecting the
documentation needed to complete and send it, you have to file an extension
with the IRS by April 15 or face interest and penalties.

There is no cost to
file an extension, although if you own a business, the deadline will vary
depending on its entity type. The form you use to apply will also depend on
whether or not you’re addressing personal or business income taxes.

Extension
For Personal Income Taxes

To receive an
extension on your personal income taxes and avoid potential penalties, you’ll
have to complete and submit Form 4868 to the IRS before April 15, 2020.
You can send it by mail or file it electronically.

Six-month extensions
are granted automatically, but this concession only applies to your tax return:
you still have to pay any tax owed by the April 15 deadline or risk penalties
and interest for failure to pay.

Extension
For Business Income Taxes

If you own a sole
proprietorship, you use IRS Form 4868 to apply for an extension because
business income is typically reported on your personal tax return. If you own
any of the following business entities, you’ll need to use Form
7004.

  • Single-member LLC
  • Partnership or LLC filing as a
    partnership
  • C corporation or S corporation.

Like personal income
taxes, you’re required to estimate how much you owe for the 2019 tax year and
submit the payment along with the application for an extension.

Business tax return
due dates and extension deadlines for 2019 are as follows:

  • Sole proprietorships,
    single-member LLCs, and C-corporations: Taxes due on April 15, 2020. Extension
    deadline moves return due date to October 15, 2020.
  • Partnerships, S-Corporations, and
    multiple-member LLCs: Taxes due on March 15, 2020. Extension deadline moves
    return due date to September 16, 2020.

If you are a U.S.
citizen or lawful permanent resident who is either living or running a business
outside of the U.S. on the date that your return is normally due, you may be
able to receive an automatic two-month extension by filing IRS
Form 2350. To qualify, you must be intending to file Form
2555 or 2555-EZ and need additional time to meet the
physical presence test or bona fide residence test for the foreign-earned
income exclusion and/or the foreign housing deduction or exclusion.

What
If You Can’t Afford To Pay Your Taxes When Due?

If you can’t afford
to pay your estimated taxes on the due date, don’t wait- file your return
anyway. Failure to do so will cost you a penalty of 5% of the unpaid tax,
charged each month (or portion of a month) the return is late for up to five
months. While you’ll still be assessed a failure to pay penalty, it’s
comparatively lower at 0.5% per month of the tax not paid by the due date.

A New Jersey tax
attorney can help you deal with your inability to pay by negotiating an installment agreement or offer in compromise with the IRS. In both
cases, you must be current with all filing requirements, which is another
reason to send your return even if you can’t pay. While you can apply for both
forms of relief yourself, an experienced tax lawyer has the knowledge,
experience, and understanding of the IRS regulations to get the best outcome
for your case.

Speak
with a New Jersey Tax Extension Attorney

Negotiating a workable installment agreement or offer
in compromise requires significant knowledge of IRS guidelines and U.S. tax
law. Attorney
Brad Paladini at Paladini Law has a Master of Laws in Taxation and
has helped a wide range of clients, from individual taxpayers to multinational
corporations, manage their tax debt matters efficiently and favorably. For more
information or to schedule a consultation about your IRS situation, call 201-381-4472
or complete our online form.

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