How do you apply for that First Time Penalty Abatement thing? Is it automatic or do you have to specifically request it? And what counts as "good compliance history"?

You need to specifically request First Time Penalty Abatement - it's not automatic. You can do this after you file the late return and receive a bill. Call the IRS using the number on your bill and specifically ask for "First Time Penalty Abatement" for your 2019 taxes. For "good compliance history," the IRS generally looks for no penalties in the prior three years and that you've filed all required returns and paid (or arranged to pay) any tax due. So if you didn't have issues with 2016, 2017, and 2018 taxes, you might qualify. Even if you're not sure you qualify, it's worth asking - the worst they can say is no.

I'm not OP, but I had a similar situation with unfiled 2018 taxes, and the IRS didn't contact me until almost 3 years later. With COVID, they got super backlogged. When they finally did reach out, the penalties had piled up like crazy.

Do you know if leasing an EV works differently for the credit? I heard something about dealers being able to claim the credit on leases even if the consumer's income is too high for the MAGI limits. Is that true or just a rumor?

Leasing absolutely works differently! When you lease, the credit actually goes to the leasing company (technically they own the vehicle), not to you as the consumer. Many dealers will pass the savings on to you through reduced lease payments, but they don't have to. The big advantage is that the MAGI limits don't apply to leases since you're not claiming the credit personally. The leasing company claims it as a business, and they can pass along those savings regardless of your income. This has become a popular workaround for higher-income folks who exceed the income limits.

Thanks for pointing this out! That's probably why I was getting confused. I was looking at info for the used EV credit but trying to apply it to a new purchase. The instructions aren't super clear that these are separate things with different forms.

I used TaxSlayer for my S-Corp last year. In the business version, look under the "Filing" menu and there should be an option for "Extensions" or "File Extension." It's not super obvious, but it's definitely there. If you can't find it, try going through the process as if you're going to file your return, and there should be an option somewhere that says something like "I'm not ready to file" which takes you to the extension option.

Found it! It was under "Other Forms" and then "Extensions" - not where I was looking at all. Thanks for pointing me in the right direction.

Oh man, I didn't even think about state extensions! I'm in Texas so I think I'm ok on state income tax, but I'll double check about franchise tax requirements. Thanks for bringing this up - these small details are exactly what I was worried about missing.

You're right about Texas not having state income tax, but definitely check on the franchise tax requirements. Most states have their own deadlines and procedures that don't always match up with federal. Glad I could help - these little details tripped me up badly my first year with my business!

Your mom should be fine! Social Security, SSI, SSDI, and Railroad Retirement beneficiaries generally don't need to use the portal unless they need to claim eligible dependents. The IRS will use the information from the Social Security Administration to send payments automatically the same way she receives her regular benefits.

Thank you so much for clarifying! That's a huge relief. She was getting worried because she heard some neighbors talking about needing to sign up for something. I'll let her know she doesn't need to do anything special.

I had the same issue! Try entering your address exactly as it appears on your tax return, with the same abbreviations and everything. Like if you wrote "Street" on your return, don't put "St." in the portal. That fixed it for me.

Wait, so even with the extension I still need to pay by April 15th? I thought the whole point was to give me more time since I don't have the exact numbers yet?

Yes, you still need to pay your estimated tax by the original deadline (usually April 15, though it varies some years). The extension only gives you more time to submit the actual return paperwork, not more time to pay what you owe. If you don't pay what you owe by the original deadline, you'll be charged interest on the unpaid amount from the original due date until you pay. It's not a huge penalty (currently around 7% annual rate), but it does add up. Make your best estimate and pay that amount when you file Form 4868. If you overpay, you'll get a refund when you file your complete return later.

This worked for me too! Called right when they opened and only waited 20 mins instead of the usual 2+ hours. The agent was able to see my W2 info in their system and gave me the numbers I needed for my extension form.