For the first time in history, the Internal Revenue Service (IRS) extended the income tax filing deadline. Due to the coronavirus pandemic, the agency pushed the April 15 deadline back three months. The move bought taxpayers more time to deal with their taxes while navigating these uncertain times. Now the tax deadline is fast approaching — just days away.
Taxpayers who are preparing to send in their returns are wise to take a moment to make sure they accounted for these three points:
- State taxes. It is easy to get caught up in federal tax obligations, but do not forget to file state tax returns. Most states also extended their deadlines to July 15. If you have yet to file state returns, now is the time to get this information in order and ready to go.
- Delays. The IRS has stated that taxpayers should prepare for delays when it comes to getting their tax refunds. The agency is just starting to reopen and has approximately 20 million pieces of unopened mail to sort and process.
- Additional extensions. Those who are not yet ready to file their returns can request an additional extension. Taxpayers can file a formal request with the IRS and push the filing deadline back to October 15, 2020.
The IRS generally expects those who receive an additional extension to pay their tax bill. The extension moves back the filing date, not the tax bill deadline. As a result, taxpayers could find themselves facing additional interest if they do not pay their bill on time.
Those who are struggling to pay their tax bill have options. An attorney experienced in tax law matters can review your situation and discuss the benefits and risks of each payment option.