Monday, May 17th is the deadline for filing 2020 tax returns and paying 2020 taxes.
Taxpayers can easily apply for a 5-month extension to file returns, pushing the due date to October 15, 2021. However, all taxes owed for 2020 are still due next week. Any amounts unpaid will begin to accrue interest on May 18th at the current federal short-term rate plus 3%, and be assessed a failure-to-pay penalty of .5% of the tax owed for each month the tax remains unpaid, up to 25%.
Regardless of receiving an extension, H.S.A.s, I.R.A.s (both Roth & Traditional), and 529 contributions must be in place by May 17th. If under extension, for Schedule C and business tax return filers, SEP IRAs and Georgia Film Credits for the 2020 tax year can initiated as late as October 15, 2021.
Killingsworth Spencer in Roswell will apply for the automatic extensions for existing clients at their request without charging a fee. For non-clients, we can file that for a refundable fee of $100, which we use to offset future tax preparation fees.