Taking advantage of July 15 Deadline

The tax deadline of July 15, 2020 is fast approaching. While most folks look forward to getting a refund from the IRS; some folks have to pay thousands in taxes. If you are in the latter category, here are few tips to maximize the July 15 deadline.

Taxpayers with tax liability should file their taxes as soon as possible to take advantage of making partial payments until July 15 deadline. For example, if taxpayer A files her taxes by June 30, 2020; she will have until July 15, 2020 to pay her taxes and she will not incur any penalties as long as the entire tax liability is paid on or before July 15, 2020 deadline.

In the alternative, use this additional time to make partial payments of tax liability and on July 15, 2020, file for installment agreement with the IRS for the remaining amount. This will aid in avoiding interest charge on the entire tax amount owed. Although the remainder of the tax amount owed will incur interest charge until the amount is paid in full; it will help in minimizing the taxpayer's burden of paying tax liability plus the interest charge on the entire amount.

Taxpayers in need of additional time to file their taxes should apply for an extension to request additional time to file taxes. Please be aware that extension only allows for the deadline to be extended; it does not extend the deadline to pay tax liability on or before the tax day, resulting in penalties on the tax liability owed.

If you need help filing your taxes, applying for installment agreement, or obtaining an extension to file your taxes, contact Singh Tax Services at (661) 599-8884 or email us at singhtaxcenter@gmail.com.

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