What should I know about the 2020 Tax Deadline Extension?
Due to the stress that the coronavirus, or COVID-19, is putting on the economic system, Americans now have an extra 90 days to file and pay their taxes.
In a historic move, the Internal Revenue Service has pushed the April 15 tax-payment deadline to July 15 this year for many people who haven’t paid their 2019 taxes.
The Internal Revenue Service has issued guidance filling in many details of the historic delay in this year’s tax-filing and payment deadlines. The agency also announced key delays to enforcement actions.
HERE ARE A FEW OF THE TOP QUESTIONS REGARDING THE DEADLINE EXTENSION:
Do I have until July 15 to prepare my taxes?
You can wait until July 15 to file and pay your taxes.
However, Treasury Secretary Steven Mnuchin, said that many people will be better off if they prepare their taxes in the next month. "We encourage those Americans who can file their taxes to continue to file their taxes on April 15," Mnuchin said. "Because for many Americans, you will get tax refunds."
Do I need to file an extension to file past April 15?
No, you do not need to take any action. The July 15 extension applies to all taxpayers automatically.
Will refunds continue to be processed as normal ?
While the federal tax filing deadline was extended to July 15, 2020, for all taxpayers, the IRS expects to continue to process refunds as normal.
What about state taxes?
Iowa’s tax filing deadline is now July 31st, 2020. For more information on state taxes check the Iowa Department of Revenue website.
STILL HAVE QUESTIONS?
Find more information on the IRS website:
The IRS has created a website to answer all Coronavirus related questions: www.irs.gov/coronavirus
Speak to a financial advisor.
Speaking to a financial advisor will help you figure out what is best for you and your specific situation during this difficult time.