How to Fill Out Form 1040A: Tax Filing Deadlines and Extensions

by Jack Pit One Stop Solutions for Accounting and Bookkeeping

The Department of the Treasury and the IRS have jointly confirmed that the tax filing and payment deadline of July 15 will remain unchanged. In cases where individual taxpayers are unable to meet the July 15 deadline, they may request an automatic extension for filing until October 15.

It is important to note that taxpayers filing Form 1040 series returns must submit Form 4868 by July 15 to secure the automatic extension until October 15. This extension grants additional time for filing the tax return but does not extend the deadline for tax payment.

The IRS emphasizes the importance of individuals who owe taxes carefully assessing their situation, even if they have obtained a filing extension, and making partial payments by July 15 to avoid incurring penalties and interest. For individuals facing financial hardships, including those impacted by COVID-19, who are unable to make total payments, the IRS offers a range of options to assist them.

To prevent the accrual of interest and penalties, the IRS encourages these individuals to make partial payments and explore various payment alternatives for the remaining balance.

Automated Time Extension to File

Many tax software providers offer an electronic version for this purpose when they do not know how to fill out Form 1040A. Furthermore, all taxpayers, regardless of their income level, can utilize the IRS Free File system to request an automatic extension for their tax filing electronically.

Method for Getting Extension During Make Payment

Simplify and expedite the extension process by simultaneously making a payment. Taxpayers can secure an extension by remitting either the complete or a partial portion of their tax obligations while explicitly designating the payment as an extension request.

This convenient procedure can be executed through various means, including Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or the utilization of credit or debit cards as payment instruments.

Notably, when choosing to obtain an extension through this payment method, taxpayers are relieved from the obligation of submitting a separate extension form. Instead, the act of making the payment itself serves as the extension request.

The usefulness of this streamlined process is twofold. Firstly, it decreases administrative limitation on taxpayers by eradicating the need for other paperwork. Secondly, it offers a prompt confirmation process whereby taxpayers receive a unique confirmation number for their records.

This number serves as evidence of the extension request and provides peace of mind, ensuring that taxpayers have successfully secured the extra time needed to complete their tax obligations.

By integrating extension requests with payments, the tax process becomes more efficient and user-friendly, allowing individuals to manage their tax responsibilities with ease and confidence.

States Due Date May Vary

It's important to note that state deadlines can vary. The IRS advises taxpayers to verify their respective state's filing and payment deadlines, as these may not align with the federal deadline of July 15.

To access an exhaustive list of state tax department websites for consideration, you can obtain help from the Federation of Tax Administrators. This will help ensure that you are mindful of and concede with any thorough state-level tax deadlines that may involve to your circumstances.

What Are the Payment Options?

Taxpayers with outstanding tax obligations have a range of payment methods at their disposal:

IRS Direct Pay: This service permits payments directly from a checking or savings account and comes at no cost to the taxpayer.

Electronic Federal Tax Payment System: Payments can be made by phone or online through EFTPS at no charge.

Debit or Credit Card Income: While the kindness itself is free, please comment that processing businesses may charge fees, which can differ.

Restrict or Money Demand: Amounts can be constructed by appraisal or money order, expected to the United States Treasury (or U.S. Treasury), and sent through standard mail.

The IRS strongly advises taxpayers facing difficulties in paying their taxes in full to take prompt action. Unpaid tax bills can quickly accumulate interest and penalties the longer they remain unresolved.

For those unable to pay the total amount, IRS.gov/payments offers several payment options to assist taxpayers, some of which may reduce penalties. While interest and late-payment penalties continue to accrue on unpaid taxes post-July 15, the failure-to-pay tax penalty rate is halved during an active installment agreement, dropping from the standard 0.5% per month to 0.25%. Furthermore, as of July 1, 2020, the interest rate for underpayment stands at 3% for the current calendar quarter.

These options provide taxpayers with flexibility and potential relief when managing their tax obligations.

For the majority of taxpayers facing challenges in paying their total tax liabilities, several payment alternatives are available:

Online Payment Agreement: This option is accessible to individuals with combined income tax, penalties, and interest totaling $50,000 or less, as well as businesses with combined payroll tax, penalties, and interest amounting to $25,000 or less.

Eligibility typically extends to most taxpayers, and they can swiftly set up an Online Payment Agreement via IRS.gov/opa. These agreements can be arranged on weekdays., Saturdays from 6 a.m. to 10 p.m. (Eastern time). It's important to note that certain fees may apply.

Installment Agreement: Taxpayers who don't meet the criteria for online payment agreements or prefer an alternative method can apply for a payment plan. This can be done by phone or through the submission of Form 9465, Installment Agreement Request, by mail. Opting for direct deposit from a bank account or payroll deduction simplifies the process, minimizes default risks, and reduces postage expenses. It's worth mentioning that specific fees may also be involved in this case.

Temporarily Deferring Display: Taxpayers have the choice to reach the IRS and invite a temporary moratorium on the compilation approach. If the IRS decides that a taxpayer is presently incompetent to make expenditures, it may wait for collection endeavors until the taxpayer's economic situation is enhanced. It's essential to bear in mind that disadvantages and curiosity will persist to accrue until the total amount is settled.

Offer in Compromise: Some taxpayers may be suitable to resolve their tax debt for an amount lower than what they owe by submitting an offer in compromise. To determine eligibility, taxpayers can utilize the Offer in Compromise Pre-Qualifier tool.

Further, taxpayers can investigate alternative expenditure choices, such as getting a loan to conceal their wonderful tax liabilities. In many cases, the loan price may be more down than the merged payments for interest and sentences assessed by the IRS per federal law. This equips someone with a range of techniques to supervise their tax responsibilities virtually.