In March of this year, the Treasury Department along with the Internal Revenue Service made an announcement that allowed for the delay of the federal income tax filing and payment due date. This meant that the deadline for filing was extended to July 15, 2020.
That simply means that instead of having to file by the regular deadline of April 15th. The deadline was extended to July 15th. This was due to the economic impact of the worldwide Coronavirus pandemic and the subsequent ordinance for Americans to stay at home to help reduce the chances of spreading the virus. The announcement was made because the President declared a Federal emergency. Many states followed suit in extending the deadline for filing and paying state income taxes as well.
This means that taxpayers could also defer income tax payments which are normally due on April 15th to the July 15th date without penalties and interest. The deferment applies to all taxpayers, including individuals, corporations, and self-employed taxpayers.
As weeks went by many Americans found themselves out of work and the economy has been drastically affected. This is the very reason why this extension was made, to help Americans manage the stay at home orders.
As we approach the new July 15th deadline Americans need to be reminded that if they haven’t filed their 2019 federal, state, and local income tax paperwork, now is the time to do so.
- If you anticipate a refund those refund payments will continue to be processed as they have in the past.
- If you anticipate owing taxes, consider carefully how you will budget that into your accounting in the few weeks that remain before the tax deadline.
The New Tax Filing Deadline and the People First Initiative
If you find that paying taxes owed is simply too burdensome due to the impact of the Coronavirus, The Internal Revenue Service unveiled the People First Initiative on March 25, 2020. It is an unprecedented effort to temporarily scale back many collection and enforcement activities by the IRS during the COVID-19 global pandemic.
Discover more about the “What Ifs” for Struggling Taxpayers
That doesn’t mean that you don’t have to pay your taxes. It does mean that the IRS is providing ways to manage the payment of your taxes during this unprecedented time.
The initiative modifies existing numerous IRS compliance programs. Whenever you owe taxes it is always best to pay them as soon as possible. And, filing and communicating with the IRS often about your tax situation is the best way to approach any difficulties you may be facing.
The IRS will continue to take steps where necessary to protect all applicable statutes of limitations. But, they are willing to work with you to provide an affordable way to pay the taxes you owe.
As always we are here to help you navigate the filing of your 2019 tax returns. We are open for business so please contact us to set an appointment, call (740) 374-6942 or use the email form below.