October's Extended Due Date Is Fast Approaching (And So Are Penalties!)

October 15 is the extended due date for federal individual tax returns for 2019.
Find out more about the late-filing penalty.
What is the interest on tax due?
Find out about additional October 15 deadlines.

Because of the COVID-19 pandemic, the IRS extended the original due date for filing 2019 returns to July 15, 2020. If you did not complete your 2019 return by July 15 and filed a request for more time, that extension expires October 15, 2020. If you fail to file before the extension due date, it may cost you late-filing penalties. Want to know more about this extended deadline? Fiducial has all the information you need.

There are no more extensions available (except in designated disaster areas). So, if you will not have the information needed to complete your return by October 15, call your Fiducial representative. They can explore your options for meeting your extended filing due date.

If you are waiting for a K-1 from a partnership, S-corporation, or fiduciary return, the extended due date for those returns was September 15 (September 30 for fiduciary returns). So, you should probably make inquiries if you have not received that information yet.

What happens if I miss the extended due date?

Late-filed individual federal returns are subject to a penalty of 5% of the tax due for each month (or part of a month) for which a return is not filed. The maximum penalty is 25% of the tax due. If you are required to file a state return and do not, the state will also charge a late-file penalty. The filing extension deadline for individual returns is also October 15 for most states.

In addition, interest continues to accrue on any balance due, currently at the rate of 3% per year. This rate is subject to quarterly adjustment.

Fiducial will need all information to complete your return at least a week before the October 15 extended due date. Call us immediately if you think you will have a problem providing the needed information. Then, we can determine a course of action to avoid potential penalties.

October's extended due date is fast approaching.

Additional October 15, 2020 Deadlines

In addition to being the final deadline to file 2019 individual returns, October 15 is also the deadline for the following:

FBAR Filings – Taxpayers with foreign financial accounts exceeding an aggregate value of $10,000 at any time during 2019 must file a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR) electronically with the Treasury Department. The original due date for the 2019 report was April 15. However, individuals have been granted an automatic extension to file until October 15, 2020.
SEP-IRAs – October 15, 2020 is the deadline for self-employed individuals to set up and contribute to an SEP-IRA for 2019. The deadline for contributions to traditional and Roth IRAs for 2019 was July 15, 2020. The usual contribution due date is April 15, but because of the COVID-19 emergency, the IRS extended it. However, no further extension is available.
Special Note: Disaster Victims – If you reside in a presidentially declared disaster area, the IRS and most states provide extra time to file various returns and make payments.

Need information on extended due dates of other types of filings and payments as well as extended filing dates in disaster areas? Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations. Ready to book an appointment now? Click here. Know someone who might need our services? We love referrals!

For more small business COVID-19 resources, visit Fiducial’s Coronavirus Update Center to find information on SBA loans, tax updates, the Paycheck Protection Program, paid sick and family leave, and more.