Taxpayers have until May 17 to file their taxes in order to remain in compliance with the IRS. Optima Tax Relief recommends that individuals still file their tax returns even if they are unable to pay their tax bills in full.
Taxpayers have the option to request an extension by the May 17 deadline if they need additional time to file their taxes.
- Individuals who owe a tax balance and do not file their tax return on time or request an extension may face a failure-to-file penalty for failing to file on time.
- Taxpayers are reminded that requesting an extension in order to have more time to file taxes does not apply to an extension of time to pay. A tax extension gives taxpayers until October 15, 2021, to file their 2020 tax return but taxes are still due May 17, 2021.
In order to get a tax extension, taxpayers must do the following:
- File Form 4868 through their tax professional tax software or by using Free File on IRS.gov.
- Submit an electronic payment with Direct Pay, Electronic Federal Tax Payment System, or by debit, credit card, or a digital wallet and select Form 4868 or extension as the payment type.
Pay down your balance by the May 7 due date
- Whether a taxpayer files their tax return or chooses to file an extension, they are still obligated to pay their tax liability in full by the May deadline to avoid interest and penalties.
- Individuals who do not pay their taxes on time will face a failure-to-pay penalty.
- The IRS provides options to taxpayers who cannot afford to pay their tax bill.
Work with the IRS to set up a payment plan
- Taxpayers that owe a tax bill after filing their taxes have the option to set up a payment plan with the IRS.
- Taxpayers can also submit a payment plan request using Form 9465, Installment Agreement Request.