Irs 2016 extension form 4868 instructions

That penalty is the lesser of $435 or the amount due on the 2019 tax return. There is also a minimum penalty for 2019 returns not filed within 60 days of the return due date, including extensions. The maximum cumulative penalty rate is 25% however, the ½ percent per month for late payment continues until the tax is paid. The monthly penalty for not filing the 1040 tax return by the July 15th due date is 4½ percent of the tax due for late filing and ½ percent of the tax due for late payment.

The Form 4868 instructions say (and tax courts have ruled) that for an extension to be valid, a taxpayer must properly estimate their tax liability, enter that tax liability on the form, and file the extension by the due date of the return, which is July 15th this year. Penalties, interest, or additions to tax for failure to pay federal income taxes were disregarded during the April 15–to–July 15 extension-period window, but these will begin to accrue on July 16, 2020.ĬAUTION: While the Form 4868 extension is an extension for filing, it is not an extension for paying your tax liability. The tax liability shown on the extension should be paid with the extension form to avoid late payment penalties and interest. Those who are unable to file their 2019 individual 1040 tax return by the July 15th deadline need to file a Form 4868 extension, which will give them until October 15th to file the return. It is also the deadline for other things tax.

So, with July 15th fast approaching, it is important to understand that the day is more than just the deadline for filing your 2019 tax return. Due to the COVID-19 emergency, the IRS provided taxpayers with an automatic three-month extension to July 15 to file their 2019 tax returns and pay the 2019 tax, among other tax actions normally due on April 15.

Irs 2016 extension form 4868 instructions