IRS Grants Extension: File Now, Pay Later
Following President Trump’s national emergency declaration, The IRS is taking unprecedented measures and extending the deadline for tax payments by 90 days.
Historically, the IRS has granted six-month extensions to any taxpayers who request them. These taxpayers were still expected to pay most of their dues by April 15th, as well as 5% interest.
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This new extension eliminates interest charges for any taxpayers who pay within 90 days of Tax Day. All taxpayers, however, must file their returns by April 15th, even if they are delaying payment. Neglecting to file remains expensive: 5% of unpaid taxes due per month, up to 25%.
Abraham Lincoln founded the IRS in 1862 and the 16th Amendment introduced an annual income tax in 1913. The IRS has a long and interesting history, but this is the first time they’ve granted taxpayers an extension like this.
David R. Evanson is a financial journalist in Philadelphia.