Despite filing extension, some small business owners feel the pinch of 2019 tax bills
The tax filing deadline was extended from April 15 to July 15 and now they've come due.
TOLEDO, Ohio (WTVG) - Nancy White has been preparing taxes for over 40 years, and today she is slammed with people filing at the eleventh hour.
“Now we’re getting all of our clients from March and April which is really hitting us hard. We’re spending long hours here,” she says.
The deadline was originally extended from the usual date of April 15th to July 15 as a means of helping the country deal with the pandemic. But coronavirus is still here, and many businesses struggling in 2020 have to scrape together funds to pay taxes on booming 2019 sales.
“I saw a client today and his business is way down, and he not only has to pay his tax preparation fees, but he also has to pay his tax preparation fees, which is hard on him, they have to pay taxes due, so it’s hard for them to come up with the money. And the only thing they can do if they don’t have the money is to file the extension and send in as much as they can to avoid paying a lot of interest on it,” says White.
If you’re unable to pay, you can set up a payment plan with the Internal Revenue Service (IRS). If you realize that you’re not going to get the paperwork in order before the midnight deadline, you can file for an extension. That will give you until October 15th to file, but you sill have to pay what you think you owe tonight to avoid interest and penalties.
“A lot of the people owe the same amount or a little bit more than last year, so if you send it at least 100% of what you owed last year you’ll be fine. You won’t be penalized,” says White.
Any balance on your 2019 taxes left unpaid at midnight will begin to accrue interest.
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