Filing extensions, paying estimated taxes, and filing taxes in a normal year

Posted on March 31, 2020


A few taxpayers have questions concerning any filing extension granted by the federal government or IRS which would extend the time for filing or filing due date, and whether or not, this allows the taxpayer to pay all taxes due at the later date.

Under normal State Laws and our city laws as required by state, extensions are already allowed for some individuals and business taxpayers for city tax returns (section 178.094 City Tax code), which are requested in writing and filed with the tax department with IRS form 4868.

Although the filing deadline may change for taxpayers as extensions are granted, there are estimated payment requirements requiring payment to the City pursuant to section 718.07 of the City of Bedford laws pertaining to municipal income tax.  These payments are also mandated under Ohio revised code section 718.08.  Also see section 178.094 (D), In other words, an extension of time to file under this chapter is not an extension of the time to pay any tax due. However due to COVID-19 state changes this is not enforced for this year.

Normally, the payment requirement under 718.07 of the city codified ordinances requires estimated taxes to be paid by April 15, or state tax filing deadline. Normally, the amount of estimated taxes paid, must be at least equal to 100% of the taxes paid in the prior tax year or 90% of the taxes due for the current tax year. Estimated taxes are a state/city requirement for any taxpayer with an estimated amount due of over $200 per year.

The filing of the Income tax return by April 15, or a later date, is to reconcile the exact amount earnings for year end and pay any remaining balance due. Underpayment of tax dollars due and not paid by April 15 have always been subject to penalty and interest pursuant to section 178.10 of the City of Bedford Tax code.

Close window