Are You Aware of These 5 Matters Regarding the Extended Tax Deadline?

by Harley Green Accountant

The coronavirus situation has made all things scattered and it is difficult to put the things together. However, the decision of the extended tax deadline has helped several small business owners and individuals during this pandemic situation. They can take help from the business accounting services to ensure that all things will be done in a proper way. However, still several have questions in their mind. The current article is written to clear those doubts and questions. Here are some crucial matters.

What If I Missed the Deadline?

What happens when you normally miss the tax deadline of 15 April? The penalties and interests start to get added to the principal tax amount. The government has already extended the date by three months, and if you still fail then it is obvious that you will need to pay the penalties. However, you can get an extension even after this deadline also. Read the next.

Can It Be Extended?

As several people yet not filed their tax returns, they have this question in their minds. However, officially the deadline is over 15 July 2020. However, you can get an extension by filing Form 4868 or Form 7004 in case you are in business. It will extend the period up to 15 October. In a normal year, filing an extension by April 15 scores you an extra six months to file, but not pay your taxes. You can contact any business accounting services to know more regarding this.

What About State Taxes?

All the states have their regulation regarding the personal income tax. Therefore, it is difficult to say which state has extended the due date and which not. However, as per the American Institute of Certified Public Accountants, most of the states have increased the deadline. Therefore, the state in which you stay or work, it is better to visit their website or ask the local account about it.

Don’t Need to Pay Penalty, In Case Of Early 401k Withdrawn

As the CARES Act is in effect, you will not face any adverse effect for withdrawing the 401K early. You do not need to pay any penalties because of withdrawing the money early. It will be considered that you have withdrawn it because of the pathetic financial condition due to the pandemic situation. If you repay the amount withdrawn back into your 401k within three years, there will be no taxes owed on the initial withdrawal.

Should It Be A Paper Return Or E-Return?

It depends on you. However, if you want to get a refund quicker, then it is better to go for the e-return. You can contact the business accounting services for details. In the case of a paper return, it will take at least six months.

Final Words

Over here, you have seen the crucial aspects of the extended tax deadline. Now according to this information, you can plan your returns.