What is the general policy of most tax preparers on filing extensions on individuals now, rather than wait for the July 15, 2020 date.
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If your client is not expecting a refund, there is no hurry to file. No interest or penalty for late payment or filing will be assessed during this period of auto postponement. However, underpayment of ES-tax penalty will still apply.
Having said that, if your client has filing obligations for other types of returns not covered by Notice 2020-18, an extension should then be filed no later than the usual due date on April 15 if more time is needed.
You are saying that the underpayment of estimated tax penalty will now calculate through the July 15th date? Or does it stop at April 15th?
No, it'll be calculated as usual, except some thought it'd be waived.
Calculated as usual thru 4/15 or thru 7/15?? Sorry, but you didnt really answer the question fully.
Why should the penalty apply after April 15?
It is codified under §6654 it is assessed only up through April 15 at the latest. I don't believe the IRS has the authority to alter that date and there is no mention of this changing even in Notice 2020-18.
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