A reader who knows they’ll owe is also facing a furlough. Our expert explains how to decide when to file given the new July 15 deadline from the IRS.
I was still going through all of my tax forms when everything started getting shut down because of the coronavirus pandemic. I’m on furlough now, and I don’t know if I’ll have enough money to pay my tax bill anymore. But then I read that the tax filing date got pushed back to July 15. I’m confused – does this mean I should still file in April, but I won’t have to pay until July? Or do I wait until July to file?
Things seem to change every day, and I just want to be able to pay when taxes are due. What is going on? – Stacy in New York
Jacob Dayan, Co-Founder of Community Tax explains new COVID tax filing deadlines…
Thank you for your question, and rest assured, you are not the only person who is confused during these very unprecedented times.
To clarify, the IRS first announced that tax payments were not due until July 15. However, they have since changed their stance, and have pushed the filing deadline to July 15, as well. So, both your income tax returns and any money you owe the IRS based on your 2019 tax returns are due July 15th.
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Should you file or wait for July 15?
There is no harm in filing now if you want to get it out of the way. However, you can wait until July 15 to file without facing penalties.
That’s what the IRS has changed for this situation. In normal circumstances, if you use a tax extension and you end up owing money, penalties and interest apply from the April 15 deadline, even though with your extension you file on October 15.
Under these new rules, if you do owe a balance, you have until July 15 to pay it without penalties or interest. If you can’t pay the balance you owe the IRS in full by the new July 15 deadline, then penalties and interest will start to apply that day
Whether or not you wait, is really your choice and whatever works best for your personal situation. Given your situation with a furlough, waiting sounds like it may be the best choice.
I hope this helps! But most importantly, please stay safe, and healthy during these times. If you have any additional questions, you are welcome to call my team at Community Tax.
If you’re worried about IRS payments in the wake of COVID, talk to a qualified expert
Published by Debt.com, LLC