What to know about deadlines for extended tax returns and quarterly payments

If, in the future, you’re unable to file your taxes by their due date, you may want to talk to your accountant or CPA about filing an extension.  However, if you do opt to file for an extension, there are several things you’ll want to keep in mind.

  • An extension of time to file your return does not grant you any extension of time to pay your taxes.
  • You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.
  • You must file your extension request no later than the regular due date of your return.
  • If you file for an extension, you have until October 15 to file your return. If October 15 falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Your return is considered filed on time if the envelope is properly addressed, postmarked, and deposited in the mail by the due date.

Information about quarterly payments

The IRS also notes that Sept. 15 is the deadline for third quarter estimated tax payments.  According to their website:

Taxpayers not subject to withholding, such as those who are self-employed, investors or retirees, may need to make quarterly estimated tax payments. Taxpayers with other income not subject to withholding, including interest, dividends, capital gains, alimony, cryptocurrency and rental income, also normally make estimated tax payments.

In most cases, taxpayers should make estimated tax payments if they expect:

  • To owe at least $1,000 in taxes for 2022 after subtracting their withholding and tax credits.
  • Their withholding and tax credits to be less than the smaller of:
    • 90% of the tax to be shown on their 2022 tax return or
    • 100% of the tax shown on their 2021 tax return. Their 2021 tax return must cover all 12 months.

Individuals who file a 2019 or 2020 tax return before Sept. 30, 2022, may qualify for penalty relief

Lastly, the IRS has announced they’ll be providing penalty relief to most people the IRS is providing penalty relief to most people who filed certain 2019 or 2020 returns late.

According to an IRS press release, “by the end of September 2022, you may be one of millions of taxpayers who will automatically receive refunds or credits of assessed penalties you paid.

This relief applies to the failure-to-file penalty. The IRS typically assesses the penalty at a rate of 5% per month, up to 25% of the unpaid tax when you file a federal income tax return late. It applies to forms in both the 1040 and 1120 series, and others.”

For more information about tax extensions, quarterly tax due dates, and other tax related matters, be sure to speak with a licensed CPA.