Tax Day 2020 for most taxpayers was extended to July 15, which is only a few days away. Due to the unprecedented effects of the global COVID-19 pandemic, the Internal Revenue Service implemented several temporary policies to assist taxpayers and provide relief during an economic downturn. However, some of those special programs and policies are quickly coming to an end. This blog briefly discusses two reasons why July 15 is an important deadline that you don't want to miss.
File and Pay on Time: One of the quickest ways to get in trouble with the IRS is to neglect filing and paying your taxes on time. This can result in a big headache that you definitely want to avoid. If you need additional time to prepare and file your taxes, then consider applying for an extension. This will provide you with an additional three months to complete your tax returns which will then be due on October 15, 2020. Requests for extensions by businesses and individuals must be filed no later than July 15. Always remember, an extension only grants you extra time to file, not pay. Be sure to pay the IRS anything you owe by July 15, or you'll be subject to penalties and fees. If you can't pay the full amount by the due date, contact the IRS about setting up a payment plan.
Special Debt Relief Program is Scheduled to Expire: In March 2020, the IRS launched a People First Initiative that was designed to help people facing challenges related to the COVID-19 outbreak. Activities such as payments for installment agreements and offers and compromise were suspended. The IRS also suspended some collection functions such as new liens and levies. However, these relief initiatives are scheduled to expire on July 15. If you are unsure of the status of your specific tax matter, we encourage you to contact an experienced tax attorney to ensure your affairs are in order.
For more tax tips and upcoming deadlines, visit the official IRS website. Tax Attorney Charles R. Frazier is a former IRS agent and is able to effectively represent his clients in federal tax cases. Contact our office today for a low-cost consultation or for assistance with federal or Tennessee tax matters.