File on Time – Even if You Can’t Pay

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Any bookkeeping, business or tax article contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor can it be used to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

Generally, taxpayers should file their tax returns by the deadline even if they cannot pay the full amount due, but if you can’t, there are several options. Let’s take a look at a few scenarios:

1. An individual taxpayer owes taxes, but can’t pay in full by the deadline. If this is the case, file a tax return or request an extension of time to file by the May 17 deadline. If tax is owed and a return is not filed on time – or an extension is not requested – the taxpayer may face a failure-to-file penalty for not filing on time.

Taxpayers should remember that an extension of time to file is not an extension of time to pay. An extension gives taxpayers until October 15, 2021 to file their 2020 tax return, but taxes owed are still due May 17, 2021.

2. File an extension. To file an extension, taxpayers must do one of the following:

  • File Form 4868, Application for Automatic Extension of Time, through their tax professional
  • Submit an electronic payment with Direct Pay, Electronic Federal Tax Payment System or by debit, credit card or digital wallet and select Form 4868 or extension as the payment type.

3. Set up a payment plan as soon as possible. Taxpayers who owe money but cannot pay in full by May 17 don’t have to wait for a tax bill to set up a payment plan. Instead, they can:

  • Apply for a payment plan on IRS.gov; or
  • Submit a payment plan request using Form 9465, Installment Agreement Request

4. Pay as much as possible by the May 17 due date. Whether filing a return or requesting an extension, taxpayers must pay their tax bill in full by the May deadline to avoid interest and penalties. People who do not pay their taxes on time will face a failure-to-pay penalty. The IRS has options for taxpayers who can’t afford to pay taxes they owe.

Don’t wait. If you need assistance filing a tax return for 2020, contact us!

File on Time - Even if You Can't Pay

Share this post NOw

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Your Solutions To Success Your Solutions To Success Your Solutions To Success

Small Business Financial Services

We help you cut through the clutter and noise and help you focus on a clear path to success. We help you succeed with a reliable bookkeeping, payroll support and income tax reporting.
Learn more

Individual Income Tax Services and IRS Response Assistance

Stressed during tax season? Surprised with a huge tax bill? Receiving an IRS letter? FAS can help make your year-end tax compliance less stressful with professional tax services.
Learn more

US and Canada Cross Border Tax Services

Our experienced staff, combined with our US and Canada locations, allows us to provide the tax support you need, wherever you are, at home or abroad.
Learn more

What Our Clients Say What Our Clients Say What Our Clients Say

Running a small business is an extremely challenging task. However with a team like FAS, I do not have to worry about our bookkeeping and tax services.

They are truly great team!
Garage Guys Automotive

Very responsive! FAS bookkeeping service has been an integral part of my consulting business.

I highly recommend FAS to business owners who are looking for a reliable business partner to handle their bookkeeping needs.

Bruce Saxton

I have known Christy for about 5 years. She has assisted several of my clients and me personally.

If you are a business owner, Christy makes an outstanding strategic partner. I highly recommend her.

Gerry Brisson

I started looking for a new bookkeeping and tax service firm as my company was no longer getting the service that we deserve from a bookkeeping firm.

I highly recommend FAS to business owners who are looking for a reliable and professional bookkeeping and tax preparation service firm.

Mark Sargent

 Because of the nature of my business and report requirements from corporate that are time-sensitive.

I can count on Cristy and her team’s eye for detail and reliability to deliver accurate and timely financial information.

Terri Foster

We've been with FAS for years and they are one of the most professional and honest people we've worked with.

I highly recommend Cristy, Dennis and FAS Bookkeeping & Tax Services Firm.

Katie To

Being a small business owner means we’re always constrained by time and resource.

I highly recommend FAS for your bookkeeping and tax preparation needs.

Roy Andrade
FAS, with Cristy & Dennis, has been an important part of our progress as a company and I will not hesitate recommending them to business owners who are looking for a serious business partner for such a sensitive financial matter.
Jorge Vasquez
I have referred Cristy to many of our clients and have always been impressed by her professionalism and dedication to her customers.

If you own a small business and operate in the Houston or Katy area you will benefit from working with Cristy on your financials
Roland Parker
Christy is an awesome bookkeeper and adviser. I highly recommend her for personal tax and business tax.

Not only she help with our taxes, she even organize our entire book keeping for very reasonable price.
Kayla Cory
FAS is the best bookkeeping services I have encountered in my 39 years of self employment. They are hard working, ethical and honest in every aspect of their professional lives.

Both Dennis and Cristy have gone way beyond their normal duties to provide services at the highest level.
Marv Conway