You may have heard that the IRS will be extending the deadline to file your 2019 tax returns. The IRS says individuals and businesses can delay filing and paying federal tax bills for 90 days, to July 15th from April 15th, as part of an emergency relief plan amid the COVID-19 pandemic.
This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify. Learn what this decision means and whether it’s worth waiting.
What Does This Mean For You?
Americans who choose to push back their payments with not be penalized, nor will they be charged interest on late payments.
If you’re likely to receive a refund and are able to submit your return on time, don’t wait to file. The funds that you receive could be useful in the coming weeks and months, especially if COVID-19 has impacted your financial well-being.
>>Tip: To make the process fast and safe as possible, the IRS advises taxpayers to utilize e-filings and select direct deposit as their preferred method for receiving refunds.
Why You Shouldn’t Wait to File Your Taxes
Unless you owe a lot of money, it’s inadvisable to wait as you will have to pay them eventually.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on the taxes paid by July 15, 2020.
What If You Can’t File by July 15, 2020?
For those who can't file by the July 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request an extension to file their return (October 15, 2020).
This October extension is not new. It’s available to tax filers every year, but it doesn’t extend the deadline for tax payments.
Just because you can wait until July 15th, 2020 to file your taxes doesn’t mean you should. If you’re able to file your taxes and are expecting to receive a tax refund, you should take the time to submit your returns sooner rather than later. The refund money you receive could be beneficial to you financially.
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