You can't put it off any longer. The federal government may have postponed the April 15 tax filing until July 15 due to coronavirus, but now that day is here! If taxpayers seek an extension, they must file or face a penalty.
The IRS has received about 139 million of the 150 million returns expected returns from individuals and as of the last count.
Here are a few answers to the most commonly asked questions in the new normal COVID-19 tax season.
Can I file online?
Yes. You can file or pay your taxes online. In fact, the IRS is hoping everyone will use their online services. And most tax accountants are able to file and prepare your taxes virtually.
Do you have to file now?
Yes. The new tax filing deadline is July 15. However, for those taxpayers who need more time, you can request an extension until Oct. 15 on the IRS website. However, an extension to file does not mean added time to pay. If you're planning on filing later than July 15, and you owe money, you must pay by July 15.
What happens if you can't pay owed taxes?
You must still file by July 15. You can then ask the IRS to help you set up a payment plan, and in many cases, those can be set up online.
What if I'm owed a refund?
The IRS is processing and issuing refunds, and if you're owed, they will pay a 5% interest dating back to April 15, and that extends to June 30. Starting July 1, however, the rate drops to 3% per year. Most people will get refunds within 21 days of filing and any refund issued after July 1 will get a blended interest rate.
What about estimated taxes?
Taxpayers who make estimated quarterly tax payments have until July 15 to make the payments for the first and second quarters.