Following the President’s March 13, 2020 emergency declaration regarding COVID-19, the IRS announced that they pushed the federal income tax filing deadline from April 15, 2020, to July 15, 2020.
This means taxpayers can postpone any federal income tax payments due on April 15, 2020 to July 15, 2020 without interest and penalties, despite the amount owed. The new deadline applies to all taxpayers, including individual filers, trusts and estates, corporations, non-corporate tax filers, and self-employment tax filers.
Furthermore, the IRS suspended payments part of installment agreements, offers in compromise, and many debt collection activities until July 15, 2020.
The 2020 Federal Income Tax Deadline is July 15, 2020: Now What?
Although three months of breathing room may come as a relief to many taxpayers, it is not necessarily a reason to put off your tax return. The IRS says it will issue most tax refunds within their standard 21-day timeframe.
For non-filers, this is three more months to file on delinquent returns – the IRS says they owe more than 1 million households refunds.
Should you need more time to file beyond the July 15 deadline, now is the time to start planning an installment agreement, which allows you to pay your tax bill in installments. If your outstanding debts are too great, you may want to apply for an offer in compromise, which allows you to settle debts for less than the amount owed.
Reach Out To Our Tax Relief Firm in Sacramento For Help Filing Your Taxes
At Paramount Tax Relief, we take pride in helping Sacramento taxpayers tackle their taxes and encourage all to take advantage of the extended tax filing deadline!
If you have any questions about filing your 2020 tax return or want a free tax consultation, don’t hesitate to contact us at Paramount Tax Relief.