COVID-19 turned the world upside down. With most of the country shut down, businesses closed, and people forced to “stay-at-home” in order to keep everyone safe, it was just a matter of time before the IRS postponed Tax Day.
On March 21, 2020, the IRS announced that they’d be delaying the tax filing deadline that was normally April 15th. The new tax filing due date is now extended to July 15th.
Simply put, this means you have until July 15th to file your taxes without having to pay penalties and interest, regardless of the amount owed.
If you have prior years of unfiled tax returns, you should file as soon as possible to avoid penalties and interest on those years. The IRS will base the $1,200 ($2,400 for joint filers) COVID-19 stimulus payments on your 2019 return. If 2019 has not been filed, they will base it off your 2018 income tax return.
Contact Jim Liang for a free, no-obligation, confidential consultation. If you think you might owe back taxes for other years or haven’t filed your 2018 or 2019 income tax return, you’re still going to find yourself in tax trouble, so contact Jim today.
#1 - It’s Automatic
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
#2 - Your Taxes Are Still Due
Despite having more time to file and pay your taxes, if you’re going to owe taxes, they will still be due by July 15th. You just have a bit more time to pay your tax bill, but if you don’t pay by July 15th, you will start accruing penalties and interest.
#3 - You Should Still File Correctly and On Time
Waiting until after July 15 to file is also a poor plan because you will only accrue more penalties and interest if you miss the deadline. Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension by filing Form 4868. Filing an extension does not mean you have more time to pay. It simply means you’ll end up paying more with penalties and interest, sinking you deeper into a hole.
So, make sure you file on time!
#4 - Check Your State Filing Deadline
Though the IRS is offering taxpayers some relief by delaying the federal tax deadline to July 15th, you still need to double check when your state taxes are due. Though most states including Maryland are following the July 15th filing deadline, some states still might require taxpayers to file by different dates.
#5 - It’s Still a Good Idea to File Early, Especially If You’ll Owe Taxes
The sooner you file your tax return, the sooner you’ll know if you owe money or you’ll get a refund. Filing before July 15th can give you a heads up and give you time to prepare for the financial burden you might face, especially during these uncertain times.
Jim’s firm specializes in tax resolution and can provide additional help with COVID-19 SBA Loan programs. Jim also serves clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to Jim and schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.