Q: What if I cannot Pay my Taxes by the July 15 Deadline?

A: Taxpayers should file on time even if they cannot pay their full tax bill

You should file your tax return by the deadline even if they cannot pay the full amount due. Otherwise, you will be assessed a late filing penalty and end up owing even more. If you owe tax, but cannot pay by the July 15, 2020 deadline, you should:

• File your tax return or request an extension of time to file.

  If you cannot file your return on time, request an extension to file on Form 4868. Without this extension, if you owe 2019 tax, you will face a Failure-To-File penalty. For individual taxpayers, filing also allows you to designate the bank account for your Economic Stimulus Payment on the Form 1040.

• To get an extension to file, taxpayers must do one of the following:

  • File Form 4868 through your tax professional or tax software.
  • Submit an electronic payment with Direct Pay or through the Electronic Federal Tax Payment System (EFTPS). If you pay by debit, credit card, or digital wallet, you will pay a fee.
• Even if you cannot full pay, pay whatever you can by the July 15 deadline. There is no extension to pay – only to file. If you owe 2019 tax and do not file or pay in full by the July 15 deadline, you will incur a second penalty – a Failure-To-Pay penalty.

• Set up a payment plan.

  If you know you will owe 2019 tax but cannot pay by the July 15 deadline, you can obtain a payment plan to make payments over time. Remember that both penalties and interest accrue over time, so it is best to pay as much tax as you can to minimize the penalties and interest.

DO NOT MAIL A SECOND RETURN. The IRS is finally back to work and processing tax returns, issuing refunds and accepting payments. Taxpayers who mailed a tax return will experience a longer wait as mail was held during the IRS shutdown. There is no need to mail a second tax return or call the IRS, as this will really mess things up!

If you have a tax problem and need a Tax Attorney, call:

With offices around the Phoenix valley, Tucson, and Flagstaff.

We represent clients at all administrative agency and appeal levels, the Arizona Tax Court, and the federal US Tax Court, and throughout Arizona: Phoenix, Glendale, Peoria, Scottsdale, Mesa, Tempe, Chandler, Queen Creek, Yuma, Casa Grande, Tucson, Sierra Vista, Bisbee, Flagstaff, Prescott, Payson, Coconino County, Yavapai County, Maricopa County, Pima County, Cochise County, Pinal County.

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