2020 has been an unusual year, to say the least. Due to the coronavirus and resulting shutdowns and financial difficulties experienced by individuals and businesses, the U.S. government altered the tax rules a bit this year. People were given a tax extension deadline through July, rather than the April 15 deadline that your local tax return specialist in Hayward, CA typically has to follow.
However, the additional time wasn’t enough for everyone. Many requested additional time, and they have until October 15 to complete their taxes. This extension is almost up. Are you ready for the deadline? Use the following guide to get all your ducks in a row:
- File electronically: Due to the myriad extensions filed this year and the temporary shutdowns related to COVID-19, the IRS is backlogged with paper returns and requests. For best results, try to file your taxes and make payments electronically. If you don’t have access to a system to do this, contact your local tax return specialist in Hayward, CA for assistance.
- Be aware of back taxes: Did you owe taxes on your 2019 return? You should note that these were due by the July deadline. If you were granted an extension until October, this grace period was designed for filing your paperwork, but it did not give you more time to make your payment. If you never paid the amount owed by July, you may owe additional funds for late penalties.
- Pay what you can: Many individuals are finding themselves in a tough spot. Even after the extensions, they don’t have the money to pay their taxes. If you can’t pay your full bill, pay what you can. Send as much as possible with your return, to minimize the amount of penalties you owe and interest that will accrue on the remaining amount.
- Request a payment plan: If you cannot pay the full amount you owe, you can request a payment plan. Pay as much as you can now, then set up a plan to pay off the remaining balance of your debt. You’ll need to follow proper protocols to request this plan and set it up, so consult with your local tax return specialist in Hayward, CA for assistance with this process.
- Document your payment: If you send a written check to the IRS, make a copy of it before you mail it. Also, double check the address to make sure you are sending it to the correct place. It’s also wise to allow extra time for processing, whether electronically or via snail mail, to ensure your filing arrives on time.
We’re here to help
Whether you’re working on C corporation or individual taxes, Menjivar & Company CPAs, Inc. is here to help. We specialize in personal, corporate, fiduciary and small business tax preparation in the Castro Valley, CA area. Our team has been the area’s go-to tax source for more than 30 years. Contact us today to finish up your taxes in time for the October deadline. Reach our experts at 510-582-3636 with any questions or to get started on a smooth, efficient filing process.
Categorised in: Tax Return