With all the uncertainty in the economy right now, many people are struggling to meet their day to day needs with 78% of people in the US living paycheck to paycheck. Different organizations have had to change the way they do things right now so we can all stay safe. Of course this pandemic has hit at a time of year when people are focused on getting their federal income taxes filed. As with every year, the filing date has always been April 15. This year however, the Treasury Department, along with the Internal Revenue Service, has made a change to this date. This year, the due date for filing federal income taxes is now July 15, 2020.
This extension is not just for the tax return, but also for any tax payments that might otherwise be due on April 15, 2020. This can be deferred without any risk of penalties or interest and it does not matter the amount that is owed. This extension is for all taxpayers which includes individuals as well as trust and estates and any corporate or non-corporate filers. It also includes those that pay self-employment taxes.
The good thing is that people that take advantage of this extension do not have to file any additional paperwork or call the IRS in order to do this. However, those individual taxpayers that need time beyond the new filing date of July 15 need to request an extension and file the Form 4868. This can be done through tax software, or your tax preparation professional. It can also be done through the website IRS.gov with the Free File link. For a business that needs extra time, Form 7004 needs to be filed.
In the event you are going to get a refund rather than have to pay a tax debt, the IRS says that you should try to get that filed as soon as you can. They still intend on trying to issue those tax refunds within 21 days of filing. This should not be delayed. Taxpayers that are due a refund are also encouraged to file electronically. Chuck Rettig, who is the IRS Commissioner says that when filed this way, direct deposit is possible, and is the quickest way to get this refund.
Chuck Rettig notes that even though they are cutting back on some of their operations, their goal is still to accept tax returns and get those refunds out to the American people. They do ask that people be understanding and patient during this time since things continue to change daily.
The IRS does remain committed to monitoring the COVID-19 virus and all the issues surrounding it. Any new information that they have will be reported on their IRS.gov website under the coronavirus page. They are committed to this in light of the Stafford Act which was declared by the President. The Stafford Act is a law brought about by the Federal Government in 1988, which is intended to bring emergency and natural disaster assistance in a systematic and orderly fashion to both the local and state governments. The goal is to help in providing assistance to the citizens of the country. Both the IRS and Treasury Department continue to remain committed to working with Congress in a bipartisan fashion on providing further assistance to the citizens of the United States.