Earlier this week, during a White House briefing it was announced the IRS will waive interest and penalty charges 90 days for Americans who owe up to $1 million in taxes in response to the coronavirus pandemic.
The payment deadline is July 15, 2020.
Today, it was announced that the filing deadline has been extended to this date as well.
Important things to note:
✔️This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates.
✔️IRS will automatically provide this relief to taxpayers.
✔️You do not need to file any additional forms or call the IRS to qualify for this relief.
You won't be totally off the hook for your tax bill
Typically, if you don't pay any tax you owe by the tax filing deadline the IRS will charge you a penalty and interest on your outstanding balance.
With the exception of any additional government relief, you'll have to pay your balance when the deferment period is up. The plus side is that you won't be charged interest or penalties during this time.
What do we think about all of this?
Our goal has NOT changed - we need to finalize returns with the April 15th deadline in mind!
Go ahead and file now. You'll have to do it sooner or later
This extension doesn't change the obligation to pay federal income taxes. You may still be charged a penalty for not filing. Start thinking about gathering those tax documents and sitting down to file or contact an accountant to do it for you!
We know... the word "extension" is music to the procrastinators ears but it's probably a good idea to go ahead, spend a couple hours, and get it over with. What else are you going to do with all that down time in quarantine??