Cutting Through the Confusion of Inheritance Tax
In the simplest terms, an inheritance tax is a state tax that’s imposed on the receipt of assets from someone who passes away.
Due to COVID-19, the filing and payment deadlines for Individual and Corporate tax returns were extended from April 15, 2020 to July 15, 2020. It has been one week since the deadline, and for various reasons, many taxpayers have not filed a second extension or paid their taxes that were due on July 15th. Please note that filing an extension with Form 4868 (Application for Automatic Extension of Time To File U.S. Individual Income Tax Return), allows you an extension of time to file your tax return on or before October 15th, not an extension of time to pay any tax due. Unfortunately, this is a common misconception amongst taxpayers that costs them hundreds, if not thousands of dollars in penalties and interest when they do file their returns. At Taxfyle, our Taxfyle Pros can assist taxpayers with late filings. Taxfyle Pros try to reduce your penalties and interest and, in some cases, assist with the abatement of penalties and interest.
If you missed the July 15th deadline and the IRS owes you a refund for your 2019 tax return, there’s good news. Technically, you didn’t need to file an extension. In this scenario, you are not yet late. You actually have three years to file that return and still get your full refund - why, do you ask? Well, by not filing early or even on time, you’re essentially giving the IRS a loan with a zero interest rate. You might think to yourself - who would ever do such a thing, leave free money on the table? Consider this, three out of four Americans are due a refund. The IRS has reported that 1.4 million people are owed federal refunds from 2016, worth $1.5 billion. Are you one of these individuals that’s owed a refund from 2016 (window to claim is still open if you filed a valid extension), 2017, 2018 or 2019? Let our Taxfyle Pros help you get your refund.
If you missed the July 15th deadline, but you have a payment due to the IRS, there is still some good news. You can still file your 2019 tax return and pay your taxes. Moreover, the quicker you pay them, the better. Here’s why: if you missed the July 15th deadline, you’re going to be facing both failure-to-file and failure-to-pay penalties, so remember the quicker you file the less you’ll have to pay in penalties and interest. Our Taxfyle Pros are here to help you in this process and are available to assist you today.
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