Tax Relief for Taxpayers Affected by the Coronavirus Pandemic
Taxpayers who owe taxes may have gotten a little bit of a break this year, but it may not be enough for those who cannot afford to pay their entire tax bill. Along with economic impact payments for taxpayers that qualify, the IRS is offering tax help for those affected by the coronavirus pandemic by extending due dates to July 15. This is in response to the disruption of income for many taxpayers and business owners who may find it difficult to pay their taxes this season.
What Happens When July 15 Rolls Around?
It is possible that individual taxpayers and some businesses may not be able to make their required tax payments once July 15 arrives. Right now, some taxpayers may be going through the uncertainty as jobs are lost and businesses that closed during the coronavirus crisis may never reopen.
For those unable to pay their taxes, there are several options. Taxpayers may file for another extension, but they will be penalized with penalties and interest on what they owe. A better plan may be filing for a payment plan now instead of waiting until July 15 or filing an offer in compromise.
Aid from Economic Impact Payments
Through the
Taxpayers who previously used direct deposit for this year’s or last year’s federal tax filings received their payments in the bank accounts. Those who did not use direct deposit received checks in the mail. The IRS created a “Get My Payment” application to help taxpayers check their payment statuses and enter their bank account information if they had not used direct deposit when filing their taxes.
Automatic Extension for Federal Income Tax Filing
On March 23, the U.S. Treasury Department and the IRS announced that they were automatically extending the federal income tax filing due date to July 15, 2020. Filers do not need to apply for an extension, because it is automatic. Because the IRS is still operating, taxpayers are encouraged to
Deferment of Income Tax Payments
Taxpayers who owe taxes or are