Things you must know about COVID-19 and your taxes
Normally, taxes are due by April 15 every year, unless that date falls out on a weekend or holiday, in which case it's pushed back a number of days. However, due to the impact of COVID-19, the White House declared to change the tax deadline and announced some changes based on this global-illness disaster.
Your payment to the IRS can defer
If you owe a payment to the IRS, you can defer up to $1 million as an individual. adding that the payments would be interest free and penalty free for 90 days.
If you want to defer, you have to file your taxes, and it will automatically not get charged interest in penalties.
You still have to file by April 15
Taxpayers should file by April 15 as normal and the deferral will be applied automatically. It means that another tax-day ritual is not changing.
As usual, you have to file the form-4868, giving taxpayers until October 15 to file a return and pay anything owed.
The deadline on April 15 will not change
The IRS provided some details Wednesday about how the deferral will work. The notice underlined the fact that “This guidance does not change the April 15 filing deadline.” The notice also defines “any person with a Federal income tax payment due April 15, 2020” as being affected by coronavirus.
A continued push to delay the filling deadline
On March 10, Democratic lawmakers on the Ways and Means Committee sent a letter to the IRS to try find out more about any changes for the filing season. “We request your continued evaluation of whether there is any need to extend the tax filing season beyond the April 15 deadline,” they wrote. A spokesperson for the committee confirmed Wednesday morning that it had yet to receive a response.
Because of the uncertainty of this global disaster of COVID-19, many tax-policy changes will be made, and the first thing that we should do is “file right now”.
If you still have any question about tax solutions, we are here to help!
Irvine Tax Solutions: www. irvinetaxsolutions.com
resources: https://finance.yahoo.com/news/trump-is-delaying-tax-payments-but-you-still-have-to-file-by-april-15-163423133.html/ Trump is delaying tax payments but you still have to file by April 15/ Author: Ben Werschkul