Important IRS Filing and Tax Deadlines Due This Week
The IRS tax deadline is just days away. Typically April 15 every year, the new deadline for filing is July 15, 2020.
In addition to the filing extension, the IRS extended other important deadlines back in March as part of their People First Initiative, with the goal of providing Americans with relief due to the virus.
There was speculation the IRS might extend the July 15, 2020, filing deadline. But, the IRS Commissioner recently confirmed there will be no further extension.
Keep reading for important IRS deadlines.
2020 Tax Return Deadlines
The IRS has pushed back the tax deadline for individuals and businesses from April 15, 2020, to July 15, 2020.
According to the IRS, “Taxpayers may also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.”¹
The deadline to file extended returns remains unchanged. If you cannot file by the July 15, 2020, deadline, you must request an extension.
Extended returns are still due by Oct. 15, 2020.
Federal Income Tax Payments Deferred
If you owe federal income tax payments on your 2019 taxes, the IRS has extended the deadline to pay without penalties or interest.
Typically due on April 15, 2020, payments are now due by July 15, 2020.
Estimated Taxes Deadlines
For those who are self-employed, the IRS extended Q2 quarterly tax payments from June 15 to July 15, 2020.²
If you are self-employed, make sure you meet the deadline this week to avoid penalties.
Estimated taxes for Q3 and Q4 quarterly payments remain unchanged, as of publication of this article.
Q3 estimated taxes are due September 15, 2020, and Q4 estimated taxes are due January 15, 2021.
Temporary Suspension of Installment Plan Payments
For those currently paying back the IRS on payment plans, the IRS announced the suspension of payments due between April 1 and July 15, 2020.
The IRS will not default any Installment Agreement during this period; however, interest will continue to accrue on unpaid balances.
Offers in Compromise (OIC) Applications
The IRS is taking several steps to assist taxpayers who are currently petitioning the IRS to forgive some or all of their outstanding tax bill–otherwise known as the OIC process.
For pending OIC applications, taxpayers have a few days left–until July 15, 2020–to make their case for relief, and the IRS will not close requests before July 15 without the taxpayer’s consent. However, interest will continue to accrue on any unpaid balances.
Read the full OIC changes here.
For Taxpayers Who Cannot Pay
In a July 8 statement, the IRS reminded taxpayers who are unable to pay due to financial hardship to call the IRS as soon as possible. They warn of long wait times.
They also recommend going to IRS.gov/payments to make one-time or recurring payment without having to contact the IRS.
401(k) Maneuver does not provide tax or legal advice. Please consult your tax or legal professional if you have questions regarding your specific situation.
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Sources:
- https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program
- https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2
