www.taxprofessionals.com - TaxProfessionals.com
Posted by Accountable Solutions

Covid-19 Tax Deadlines: What you need to know

Covid-19 Tax Deadlines: What you need to know

You may have heard of the 90-day fee extension due to the coronavirus pandemic, but you don't know what it covers. What does the extension mean for Americans? Do taxes still have to be filed and paid before April 15, 2020?

The new tax day is July 15, 2020, due to the coronavirus pandemic. This modification includes the conditions of transport and payment. The IRS continues to accept returns and process refunds.

Covid-19 Tax Deadlines: what you need to know

As of March 20, the Treasury Department has announced the following 19 guidelines for the tax period, granting taxpayers and businesses an additional 90 days to file and pay the tax liability starting in 2019. Here are the primary data you need to know.

Tax return deadline – July 15, 2020: The tax registration must be filed on this date. If you need added time to sort yourself out, you can request an extension until October 15, 2020. 

Tax payment deadline – July 15, 2020: If you have an income tax for 2019, you can defer payment from the IRS until now. You don't have to pay interest or penalties if you pay before this date.

Frequently Asked Questions Regarding Changes in the Tax Term due to the Coronavirus

Who has the right to defer tax? 

The following types of taxpayers are eligible to use the unique tax extension for coronaviruses.

    •    Individual Form 1040 filers

    •    Associations

    •    Companies

    •    Corporations

    •    Estates

    •    Trusts

    •    Partnerships

What should I do to delay the payment of my deposit and my taxes?

You must file your income tax return or file extension before July 15, as you usually do. Tax deferral for 90 days is automatic upon filing, which means that interest and fines are automatically revoked for 90 days and will not accrue to taxpayers and qualified businesses until July 15.

I need more time to prepare for my return. What do I do?

You must register on Form 4868 to request an extension by July 15, 2020. This extension would allow the return to be filed before October 15, but payment will continue to be in the extended payment period on July 15, 2020.

What happens if I get a refund? Does this news concern me?

You should not be bothered if you receive a refund. The Treasury Department says that you should receive a refund during the standard period, of which nine out of ten are received within twenty-one days of electronic filing.

What types of payments are covered by this deferral?

It includes income tax payments, as well as interest and fines customarily associated with them, such as a fine for non-payment. It also covers estimated tax payments (including independent tax payments) due on April 15, 2020, for the fiscal year 2020.

How long can I defer for?

There is no limit to the number of tax payments that can be differed.

Does this deferral apply to estimated budgetary payments by 2020?

Yes. The tax deferral currently includes the first estimated tax for 2020, including estimated taxes for self-employment due on July 15, 2020.

Does this only apply to tax obligations in 2019?

No. The exemption applies to payments estimated for the first quarter of 2020, which is usually due on April 15. Currently, this does not affect the estimated payments for the second quarter, still due on June 15.

Please note that all deferred tax payments must be added. "For example, a person who owes income tax for 2019, as well as an estimated tax for 2020, can only differ by one million dollars."

Are extensions still available beyond the new July 15 filing deadline?

Yes, you can opt for an automatic extension of six months, which runs until October 15. It has not changed. And, as before, if you're expecting a refund, you'll probably want to deposit it as soon as possible to get it faster.

By the way, subsidiary investors have until July 15 to contribute to the individual, traditional and Roth retirement accounts and count them on the profits of 2019.

How many taxpayers are affected by late payments and deposits?

It's hard to say, because some people make payments on time, while most are still reimbursed. The IRS said it received 68 million in profits on March 6, just under half the total of $ 150 million it expects to receive. Of the returns sent to date, 78% have included refund requests, although this percentage will decrease in the coming weeks.

Accountable Solutions
Contact Member