Tax Day 2020: More information about the Tax Day extension

 

The due date for taxable people to file for 2019 tax returns and tax payments has shown up following a three-month prolongation. 

 

The federal government extended the conventional April 15  due date for tax returns and payments to July 15 owing to the ongoing global pandemic. The extension has given economic comfort to numerous taxpayers who are affected by business closures, store shutdowns, and countrywide lockdowns. 

The People First Initiative, as it was termed, provided taxable people some comfort as it incorporated postponing installment payments, ceasing field enforcement actions, and temporarily halting automatic liens or levies.

For taxpayers, 2019 tax returns and tax payments, along with their first two 2020 assessed tax payments, are to be paid on Wednesday, July 15, as informed by the Internal Revenue Service.

On June 29, The Department of the Treasury and the IRS declared that the final date to pay taxes would not be protracted beyond that date. Despite that, individual taxpayers who would require more time to file their taxes can seek for an automatic protraction to file by Oct. 15. It’s essential to emphasize the fact that the extension is for filing only, it is not a protraction to pay taxes that are due. Filers have time until Wednesday midnight to put forward the request, as reported by the IRS.

The IRS is encouraging individuals who have to pay taxes, to pay the amount they can by Wednesday,

despite having a filing extension. The agency informed on their website that “as the IRS restarts compliance activities after July 15, enforcement processes will resume on a case-by-case basis.”

The IRS even provides long- and short-term payment plans that enable fillers to settle in installments subjecting to the amount payable. Although the balance of unpaid taxes remains to amass interest and penalties, the monthly penalty rate is decreased to .25% from the initial 5%.

The individuals who will need beyond 120 days to pay and owe amounts lower than $50,000 in combined tax, interest, and penalties can apply online.

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