FILED YET? TAX DAY IS TODAY
It’s time to do your taxes.
As the pandemic took hold this spring, the federal government postponed the April 15 filing deadline until July 15.
Taxpayers must file or seek an extension by the new deadline or face a penalty. The IRS is expecting about 150 million returns from individuals, and as of last count, it had received almost 142 million.
So for those of you still waiting to file, make a payment or with other questions, a few answers:
Do I have to?
Yes. In most cases, you must file and pay your taxes by July 15.
Taxpayers who need more time can request an extension on the IRS website
(irs.gov). That will give them until Oct. 15. However, an extension to file does not mean added time to pay. So those planning on filing later should estimate what they owe and make that payment by July 15.
I can’t pay now, what do I do?
Go ahead and file even if you cannot pay. The IRS is willing to set up payment plans or make other arrangements with taxpayers who cannot pay in full.
What about refunds?
The IRS is still processing and issuing refunds, most within 21 days. Those getting refunds will be paid interest, dating back to April 15, if they file on time. The interest rate is 5% per year through June 30. Starting July 1, it drops to 3% per year. Any refund issued after July 1 will get a blended rate.
I don’t want to go anywhere. Can I do this online?
Yes, you can file or pay your taxes online — in fact, it could be the way to go to avoid a delayed refund for 2019. The IRS urges taxpayers to use electronic options. The agency is still working its way through an estimated backlog of 12 million pieces of mail that built up during its closure in response to the pandemic.
What about estimated taxes? Taxpayers who make estimated quarterly tax payments have until July 15 to make the payments for the first and second quarter. Those were originally due on April 15 and June 15 respectively.