Not exactly. To begin, I will go over the extra costs that would (and would not) apply in this situation.
- Penalty for filing late. There will be no penalty for filing a return late when you file your extension before April 15, 2020.
- Penalty for paying late. There will be a penalty on the balance due that wasn't paid by April 15, 2020. Why? Filing an extension gives you extra time to submit your return but doesn't give you extra time to pay your tax. How much? This penalty is generally 0.5% of the unpaid tax balance per month, not to exceed 25%.
- Penalty for underpayment of estimated tax. This penalty will not apply for 2019 based on the information you have supplied but may apply for 2020.
- Interest. Interest will apply on the amount of tax not paid by April 15, 2020.
The safe harbor option of paying 100% of the prior year tax only applies to the underpayment penalty. Therefore, if you have some idea of what the partnership income is for 2019, then you should go ahead and send in additional funds for 2019 to reduce your late payment penalty and interest. Don't wait until October to send additional funds if you believe you will owe them.
For your 2020 estimates, it may be easier to estimate your earnings as you go and aim to pay at least 90% of your tax due in advance of April 15, 2021. Particularly if the high income in 2019 is not expected to recur. Paying 100% of 2020 tax is a safe harbor, but you are not required to pay that much if you believe you will owe less than that amount. As long as you pay 100% of the prior year tax OR 90% of the actual tax due, you will not have the underpayment penalty.
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