With the unanticipated coronavirus pandemic, COVID-19, currently in the United States, The Trump Administration has approved an emergency relief plan. Individual Taxpayers and Businesses have been granted relief with upcoming tax due dates. At first, this plan allowed for a delay in tax payments only until July 15, 2020. However, A few days later, the Treasury secretary Steven Mnuchin said that they will extend the filing deadline by 90 days also. This resulted in the tax payment deadline and the tax filing deadlines of April 15, 2020 to be extended until July 15, 2020.
If individuals or businesses are still unable to file their taxes by the new deadline then they will still have an option to request an extension of time to file. In order to do so there must be a valid extension filed with the Treasury Department before the new date of July 15, 2020. If you are an Individual then Filing Form 4868, Application for Automatic Extension of time to file U.S. Individual Income Tax Returns, will need to be submitted timely. If you have a business such as a partnership, multiple-member LLC filing as a S-corporation, corporation or partnership then filing Form 7004, Automatic Extension for Business tax Returns must be submitted timely. Make sure to include a tax payment with your extension request to the Internal Revenue Service. There is no extension of time to pay the income tax that is due.
The Trump Administration stated that most taxpayers qualify for the extension of tax payments and income tax filing. This plan will apply to Corporations, trusts and estates, individuals and those who are subject to pay self-employment tax. It will also include any non – corporate companies that are required to file. During this time, if you do not pay your taxes, the Internal Revenue Service will not assess interest or penalty amounts to your account. This will be valid for all taxpayers regardless of the amount they owe. If you are expecting a tax refund, then you should continue to file as normal. The Internal Revenue Service is encouraging people who are owed a refund to file as quickly as possible. Most refunds are still being processed within 21 days. According to www.IRS.gov“Even with the filing deadline extended, we urge taxpayers who are owed refunds to file as soon as possible and file electronically,” said IRS Commissioner Chuck Rettig. “Filing electronically with direct deposit is the quickest way to get refunds. Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds. As a federal agency vital to the overall operations of our country, we ask for your personal support, your understanding – and your patience. I’m incredibly proud of our employees as we navigate through numerous different challenges in this very rapidly changing environment.” The staffing for the Internal Revenue Service to process a mailed return may be delayed by weeks.
As this new emergency relief plan has been approved on a federal level only, you may want to follow up with your state authorities to see if any extensions have been granted. Your state tax accounts will be addressed differently than your federal tax accounts. Some states have already been providing relief to certain types of individuals. The relief would be based on their conditions during the coronavirus pandemic and if themselves or someone in the households they care for have become infected. They are limiting the relief mainly to those who were severely impacted by COVID-19. There are a handful of states who are opting to follow the federal government’s deadline extension dates. Some states chose not to extend the deadline in which you must file your state income tax return. If your state is participating, this would allow both your state and federal tax payments and filing to be extended until July 15, 2020. Overall, it is best to follow up with your state taxing authority to fully understand your state tax requirements.
During a time of need, Omni Tax Help is here to stand by your side. Contact our office immediately for a consultation. We will assess your financial needs and be able to guide you through the process of resolution. Omni Tax Help has a team of trained experts that can identify your tax filing or payment requirements. Each expert will work with you on an individual basis to make sure that you meet your deadline requirements. Even if you are struggling to pay your taxes due and end up with a tax bill, Omni Tax Help can make sure you take advantage of each payment plan program you qualify for.