Although the filing and payment deadline for most 2020 federal tax returns has passed, taxpayers should start preparing for next year’s tax season in order to ensure they get the most out of their return and avoid any big tax time surprises.
Optima Tax Relief provides helpful tips on what taxpayers should do to prepare for next year’s tax filing deadline:
- Make sure to file a tax return or request an extension of time to file by the tax deadline.
- Individuals who owe a tax liability but fail to file their return on time or request an extension could face a failure-to-file penalty.
- Taxpayers are reminded that an extension of time is not an extension of time to pay.
- Taxpayers typically have until October 15, 2021, to file their taxes, however, taxes are still due by the initial tax deadline.
- Pay as much as possible by the tax deadline due date.
- Individuals that are filing a return or requesting an extension should still attempt to pay their tax bill in full by the tax deadline to avoid any interest and penalties.
- People who fail to pay their tax bill by the tax deadline will face a failure-to-pay penalty.
- The IRS website provides additional information for taxpayers who are unable to pay taxes they owe.
- Set up a payment plan as soon as possible.
- Taxpayers who do not have the ability to pay their tax liability in full by the tax deadline do not have to wait for a tax bill to request a payment plan.
- Taxpayers can apply for a payment plan on the IRS website or speak with a tax professional to help assist with the negotiation process with the IRS.
- Taxpayers can also submit a payment plan request in writing using Form 9465, Installment Agreement Request.