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For taxpayers who filed an extension on their 2019 federal income tax return, the Internal Revenue Service deadline to file their return is on or before October 15, 2020. 

Typically, the IRS allows taxpayers an extension of six months from the filing deadline (April 15) to file their returns. This year, due to the coronavirus pandemic, the Department of Treasury and the IRS extended the filing deadline for tax returns from April 15 to July 15, 2020, but the October 15 extension deadline to file remained the same as it would be in any normal year.  

This may throw some taxpayers off, because people who frequently request extensions are typically given six months from the normal Tax Day of April 15 to the extension date of October 15. Since Tax Day in 2020 was pushed back to July 15, individuals requesting extensions only got three additional months from the revised filing deadline to file their taxes. 

Keep in mind, the extension gives taxpayers until October 15 to file their federal income tax return, but taxes owed for 2019 were still due by July 15, 2020. 

If a taxpayer didn’t request an extension and hasn’t yet filed, the IRS recommends they file and pay any taxes due as soon as possible to avoid additional penalties and interest. 

Some people are automatically granted more time to file. They include: 

– Members of the military and others serving in a combat zone. These individuals typically have 180 days after they leave the combat zone to file returns and pay any taxes due. 

– Taxpayers who already had valid extensions and reside in areas in which a federal disaster has occurred may receive additional time. For more information on tax relief in disaster situations, visit https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

The IRS recommends taxpayers file, pay and receive refund payments electronically. One payment option includes the IRS Direct Pay tool available at www.irs.gov, which allows taxpayers to pay online directly from a checking or savings account for free. Taxpayers can also choose to pay with a credit card, debit card or digital wallet through a payment processor. Additional fees may apply. For additional ways to pay taxes electronically, visit https://www.irs.gov/payments

Taxpayers can receive their refunds electronically via direct deposit to their bank or other financial account. Direct deposit is much faster than waiting for a paper check to come in the mail. After filing, individuals can use the Where’s my Refund tool at www.irs.gov or download the IRS2Go app to track the status of a refund payment. 

Please remember to always consult your tax advisor before making any tax-related decisions. For more information on the October 15 extension deadline, visit https://www.irs.gov/newsroom/irs-reminds-taxpayers-who-filed-an-extension-that-the-oct-15-due-date-approaches

 Authored by Dennis Culver, Insight Wealth Strategies 

Insight Wealth Strategies, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Insight Wealth Strategies, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Insight Wealth Strategies, LLC unless a client service agreement is in place. 

Insight Wealth Strategies, LLC (IWS) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.