How to pay your tax bill or file for an extension...psssst it's easy.
Tax day is here so let's keep it short and sweet.
What's due today?
- Tax Returns for 1040 filers with Schedule C (Sole Prop, Single Member LLC, etc)
- Tax Payments from those returns
- Quarter 1 Estimated Tax
- Quarter 2 Estimated Tax
If your return has already been filed and you need to make a payment, log on the IRS and you make your payment directly online.
https://www.irs.gov/payments Direct pay is free, CCs charge a small fee.
Paying your balance due? Select "tax return or notice" > 1040 > 2019.
The next page wants to verify your identity. Use tax year 2018 as your 19 return is probably not processed yet. (IRS is backlogged, surprise surprise!) Enter the address that was on your 2018 tax return.
If you are making an estimated tax payment select "estimated tax" > 1040 > 2020. Use same verification technique as above.
If you are like holy shit, I need an extension, it's pretty darn simple. If you think you'll owe, you make a payment that will automatically grant you until 10/15/20 to file your taxes. Select "extension." Use same verification technique as above.
If you live in CA, you can do the same here. https://www.ftb.ca.gov/pay/
Requesting an extension gives you extra time to file and allows you to make timely elections on your tax return. No extension and you forfeit some of your tax payer rights.
An extension does NOT grant you more time to pay. So if you owed last year or expect to owe this year, making an estimate for your extension payment is a good idea. It will limit any failure to pay penalties and interest. You can reconcile the balance when you meet with your tax pro and pay any remaining tax due or request a refund.
If you can not pay your tax bill you can typically request a payment plan. The IRS refers to this as an installment agreement. https://www.irs.gov/payments/online-payment-agreement-application
Your state likely has a similar program. Just google your state + tax payment plan.
Let's get to work people!
PS - Don't forget to pay your franchise tax for your biz entity!
PPS - Quarterly Sales Tax is due at the end of this month.
*This article is for informational purposes only and should not be relied on as written advice. Please consult the appropriate tax agencies to determine your filing/payment requirements.*