Each year, the due date for filing taxes end on April 15, or at a similar date. However, this doesn’t mean that you have to file your taxes before that time comes. That’s why there is such a thing as tax extension but this doesn’t mean that you will not be subjected to paying taxes before the due date.
Even if you file for an extension, you still have to pay your taxes before the due date. Keep in mind that it’s okay if you overpay as you will get any amount that you’ve exceeded in your tax refund. Also, keep in mind that even if you can’t pay your taxes, you must file for an extension if you still need time to pay your taxes. So if you want to file for an extension because you can’t pay your taxes, that will not be the best way to go.
There is a huge difference between not paying taxes and not filing for an extension. The IRS can tolerate not paying taxes without giving you any penalty, in fact, IRS helps out those who need time to pay their taxes and can put you on a payment plan. If you don’t file your taxes before the due date without filing for a tax extension in 2020, the agency may subject you to a 5% penalty for every month your taxes remain unpaid up to 25% in total. Visit our front page to learn more on taxes!