What does the income tax due date delay mean for filers?
The White House has announced that all tax filers, businesses and individuals alike, will be given an additional 90 days to file and pay their federal income taxes. This announcement comes on the heels of emergency relief efforts designed to battle the coronavirus pandemic sweeping the nation.
Many tax filers are left with confusion regarding the potential impact on their 2020 tax filings. We are taking a look at the most common questions individuals and businesses have for their accountants this year.
Do I need to file my taxes by April 15th?
The short answer, yes, you still need to file.
Initially, only the payment due date was pushed back 3 months past the original deadline. The US Treasury Department later announced that the 90 delay would also apply to the filing date as well, meaning that both your 2020 tax payment and your filings must be submitted no later than July 15th, 2020.
Will I need to pay a penalty for filing after April 15th?
No, you will not be subjected to penalties or interest for taking advantage of the tax due date delay. The delay applies to all types of filers at any income level.
What will happen with my tax refund?
Regarding tax refunds, all the normal rules still apply. The IRS is still processing returns and will continue to offer refunds in the standard timeframe of 21 days depending on the volume of returns submitted.
What about my state taxes?
Be careful! Not all states have delayed the state tax filing date. It is important to check with your state tax authority to find out whether or not you will need to file your state taxes by April 15th. If so, you would be on the hook for late payment to the state and any associated penalties for doing so.