As you’ve most likely heard by now (unless you’re avoiding the news, we can’t blame you) the IRS has extended the deadline for tax filing and repayment for 2019 taxes due to the effects of Covid-19. Everything is now due on July 15th, giving you an extra 90 days to prepare, file, and pay your taxes. While this may be a big relief for many of our clients, we’re certain you have some questions as well, and we’re continuing to work hard to support you through this uncertain time. Read on to see our most frequently asked questions and answers surrounding the extension.
When are my taxes due?
When lawmakers originally announced an extension, it only applied to tax repayments, not actually filing your return. We’ve now learned that the deadlines for filing AND repayment have both been pushed back to July 15th, an extra 90 days to complete the process.
What about my state return?
If you file state taxes, you may also be entitled to more time to prepare your return and pay anything you may owe. Be sure to double check if your state has allotted more time. On the flip side remember that the sooner you file, the sooner you’ll receive any money you’re owed.
When do I have to pay any money I owe? What if I don’t have the money because Covid-19 has impacted my job?
Just as the deadline for filing has been extended by 90 days, so has the deadline for paying any taxes you may owe. As stated above, everything is due by July 15th.
If the effects of Covid-19 have hit you especially hard, keep in mind that the IRS offers payment plans for any taxes you owe. Be sure to apply for a payment plan on their website (irs.gov) before the July 15th deadline so you can pay what you owe a little at a time penalty free.
Should I Wait Until Closer to the Due Date and Hope Things Are Normal By Then?
Although you may appreciate this extra time to get everything done, we strongly recommend filing as soon as possible for a few reasons. The first reason is that the sooner you file, the sooner you’ll receive a return if you’re owed one. This cash in your pocket can be an enormous help to get through the financial hardship many of us are now facing due to the coronavirus.
Additionally, if you file now, then the government has your most up-to-date information on file. This will be helpful in the case that they offer some kind of financial relief for Americans. Having outdated or incorrect information on file may delay that stipend.
I don’t think I can get my taxes done by July 15th, now what?
As mentioned above, it truly is in your best interest to file your taxes sooner rather than later, especially with everything happening in the world. However, if you anticipate needing more time beyond the new July 15th deadline, you can file an extension that will give you until October 15th. However, there are 2 important factors that you must keep in mind if you find yourself in this situation. First, you still need to file that extension by April 15th – this deadline has not been extended. Second, you still have to pay what you owe by July 15th or you’ll start accruing interest penalties.
I’m self-quarantining but need help preparing my tax return. What can I do?
Although we certainly love meeting with our clients in person, in these times of social distancing we’re happy to help in any way we can. We want to help you get your taxes done so that you can get your return as soon as possible. We offer video and phone meetings and you can even upload your documents online. In addition, we’re always available by phone, email, and through our website to answer any questions.
If you have any questions or concerns about how Covid-19 affects your business or personal taxes, give us a call at (603) 601-4515 or send an email to Info@MarcMichaudAssociates.com.
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