Federal taxes owed on a 2019 federal tax return are due and payable on or before July 15, 2020 to avoid a failure to pay penalty and interest owed on the unpaid taxes. This date for payment cannot be extended.
If you cannot pay in full by the due date then consider applying for a payment agreement with the IRS - https://www.irs.gov/payments/online-payment-agreement-application
For Virginia state taxes owed - https://ttlc.intuit.com/community/tax-topics/help/state-tax-relief-for-covid-19/01/1355275
Virginia (VA) will waive late-payment penalties for individual, corporation, and fiduciary income taxes (including estimated tax payments) due April 1 through June 1, as long as they are paid by June 1. Tax return filing deadlines remain unchanged.
Interest will accrue on payments received after the original (not extended) filing deadline and "if full payment of the amount owed during the period is not made by June 1, 2020, this penalty waiver will not apply, and late payment penalties will accrue from the original date that the payment was due." See Tax Bulletin 20-4.
See this Virginia Department of Taxation website for payment plans - https://www.tax.virginia.gov/paymentplan
@skvs02 wrote:
Hello,
I am trying to file my returns through turbo tax. I am still seeing a Penalty/Interest. I was reading that IRS has waived all the interest and penalties due to COVID-19. Could you please let me know why they are not getting removed? I am using a desktop version of turbo tax and it received all the latest updates.
Thanks
The Penalty for Underpayment of Estimated Tax has not been waived.
IRS Tax Topic - https://www.irs.gov/taxtopics/tc306
Federal taxes owed on a 2019 federal tax return are due and payable on or before July 15, 2020 to avoid a failure to pay penalty and interest owed on the unpaid taxes. This date for payment cannot be extended.
If you cannot pay in full by the due date then consider applying for a payment agreement with the IRS - https://www.irs.gov/payments/online-payment-agreement-application
For Virginia state taxes owed - https://ttlc.intuit.com/community/tax-topics/help/state-tax-relief-for-covid-19/01/1355275
Virginia (VA) will waive late-payment penalties for individual, corporation, and fiduciary income taxes (including estimated tax payments) due April 1 through June 1, as long as they are paid by June 1. Tax return filing deadlines remain unchanged.
Interest will accrue on payments received after the original (not extended) filing deadline and "if full payment of the amount owed during the period is not made by June 1, 2020, this penalty waiver will not apply, and late payment penalties will accrue from the original date that the payment was due." See Tax Bulletin 20-4.
See this Virginia Department of Taxation website for payment plans - https://www.tax.virginia.gov/paymentplan
Hello,
I am trying to file my returns through turbo tax. I am still seeing a Penalty/Interest. I was reading that IRS has waived all the interest and penalties due to COVID-19. Could you please let me know why they are not getting removed? I am using a desktop version of turbo tax and it received all the latest updates.
Thanks
@skvs02 wrote:
Hello,
I am trying to file my returns through turbo tax. I am still seeing a Penalty/Interest. I was reading that IRS has waived all the interest and penalties due to COVID-19. Could you please let me know why they are not getting removed? I am using a desktop version of turbo tax and it received all the latest updates.
Thanks
The Penalty for Underpayment of Estimated Tax has not been waived.
IRS Tax Topic - https://www.irs.gov/taxtopics/tc306
Filing an extension to extend your time to file does not extend your time to pay (if you owe taxes.). You still have to pay by July 15th not matter what, to avoid late payment penalties and interest.
If when you file, what you owe the IRS is more than $1000 or more than 10% of your total tax liability (whichever is higher) then you will be assessed an underpayment or under withholding penalty, regardless of when you actually pay what you owe.