IRS Offering Payment Relief; Here’s What You Need to Know

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UPDATE: “Tax Day” is moving to July 15, Secretary of the Treasury Steven Mnuchin announced via Twitter this morning.


See the full story here.

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The following is information the IRS released on March 18. 2020. Tax Day has been moved to July 15 since then. The IRS has not updated information on payment relief beyond that at the present time. 


In response to the COVID-19 pandemic, The Treasury Department and the Internal Revenue Service (IRS) are providing payment relief to individuals and businesses. 

 

Here’s What You Need to Know: 

 

  • First and foremost: Yes, you still have to pay your taxes. 

 

  • The filing date for tax returns remains April 15, 2020 (now moved to July 15. See update above.) However, all taxpayers are still eligible to request a six-month extension to file their return. 

 

  • Income tax payment deadlines for individual returns with a due date of April 15, 2020 are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due.

 

  • The payment relief applies to all individual returns. 

 

  • Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.

 

  • For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.

  • The relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.

 

  • On July 16, 2020, penalties and interest will begin to stem on any remaining unpaid balances. 

 

  • You can avoid interest and penalties on taxes paid by July 15 if you file your tax return or request an extension of time to file by April 15. 

 

  • The IRS says the easiest and fastest way to request a filing extension is to electronically file Form 4868 (businesses form 7004) through a tax professional, tax software or using the Free File link on IRS.gov. 

 

  • The relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax.

 

  • More information can be found here.