Tax day is almost here. This is what you need to know...
The extended due date for filing your 2019 federal individual income tax return is July 15, 2020. So, if you have not yet filed your return, or you have filed your return but have not yet paid the taxes due, the deadline is this Wednesday.
If you are unprepared to file your federal return on July 15, you can request an automatic extension and your return will be due on October 15, 2020. Note that an extension to file your return is NOT an extension to pay any tax that is due. So, if you owe income taxes for 2019, you will need to pay that amount no later than this Wednesday, July 15 to avoid penalties and interest on the unpaid amount. If you are unable to pay the amount due, then you can request a payment plan from the Internal Revenue Service.
If you are expecting an income tax refund, you should be prepared to wait for it. Why? The Internal Revenue Service is reported to be experiencing a significant backlog in their processing of returns. As of July 3, 2020, 142 million taxpayers had filed their income tax returns with the Internal Revenue Service; and of these returns, about 4.7 million were mailed in.
Also, in addition to its usual processing of these returns, the Internal Revenue Service distributed some 160 million stimulus payments as part of pandemic relief. So, the Service has a lot on its plate, so to speak. The silver lining here, however, is that, because the backlog is disaster related, the Internal Revenue Service will pay interest on your refund until it is paid in full.
As for your state income tax returns…
If you live in a state that imposes an income tax, then note that state filing deadlines will vary. Some states extended their deadlines alongside the Internal Revenue Service, and some allowed even more time to file. However, some did not extend their deadlines at all.
If you need to know when your state income tax return is due, click here to contact your state’s taxing agency.
The key takeaway here: DO NOT let your 2019 filing obligations fall by the wayside. The Chenevert Law Group has over 20 years’ experience in tax consulting and preparation. If you need help with your returns or have any questions about what has been shared here, please do not hesitate to contact us. We are here to help. This is what we do.