Many people that have been concerned about how they are going to pay their Federal income tax by April 15th can relax. There is an IRS extension in place now that gives individuals a new filing deadline of July 15, 2020. This gives everyone an extra three months. Hopefully, people will be able to move around by then and get to their tax preparer by that time.
Since everyone is supposed to be staying home as much as possible – even the IRS, the tax deadline has been moved. There still are some limitations in place and some benefits. The deadline applies to all individuals and businesses that normally file on April 15th and it is not necessary to submit a request for an extension.
For those who file their federal income tax forms by the new date, there will not be any fines or penalties. It is important to ensure that your state taxes have also been extended to the new date. If not, they are due at the normal time. States are not being told that they have to change the date, but many already have.
The new due date for taxes is limited and only applies to taxes that are normally due on April 15th. This includes sole proprietorships. Others that have the new due date include such groups as trusts, partnerships, estates, associations, companies, and some corporations.
Businesses that have to make quarterly payments are not affected by this ruling. It only applies to taxes due on April 15th. If a business has to make quarterly payments, the second-quarter payment is still due on June 15, 2020, and the third quarter is due on September 15, 2020.
If there is some reason that you cannot complete your income taxes by July 15th, you still can apply for a six-month extension.
The IRS has also announced that it will not be starting any new audits during the three months. One reason for this is that they do not conduct an audit over the phone. They also will not place any new liens or levies until after the due date.
If you have been making payments on your taxes, the IRS understands that it may be difficult to have any income during the coronavirus crisis. Payments on taxes you already owe and would have normally paid between April 1st and July 15th have been postponed, but you will owe interest on the balance after July.
If you have other types of taxes that are due on different dates but are not included in a 1040 tax form, you need to check to be sure that they are not still due. Do not avoid looking into it.
The amount that you will receive from the stimulus check will be based on your taxes. If you have already sent your 2019 tax forms in, then the amount you receive will be based on it. Otherwise, it will be based on your 2018 tax forms. If your income during 2019 was lower than in 2018, you might hurry and get it in. It will come either as a direct deposit into your bank account – if the IRS has an account number, or in the mail.