Remember back in April when we were so excited about the extended filing deadline? Well, it’s right around the corner.
Your 2019 tax payments are due in addition to the first and second installments of 2020 estimates.
Even if you extend, the paperwork gets extended but not the actual payments.
If you don’t pay on time or file late, you can incur penalties of 5% of the taxes owed per month the return is late, up to a maximum of 25%.
If you file more than 60 days after the due date, the minimum penalty is $435 for tax returns required to be filed in 2020 or 100% of your unpaid tax, whichever is less.
Avoid the unnecessary costs of a penalty and ask to have your accountant file an extension if you cannot meet the deadline.