No more delays: What to know about July 15 tax deadline

It’s time to do your taxes — no more delays.

As the coronavirus pandemic took hold this spring, the federal government postponed the traditional April 15 filing deadline until July 15. The move provided some economic and logistical relief for taxpayers dealing with the disruptions and uncertainty brought on by lockdowns, school closures and shuttered businesses. But now that new deadline is rapidly approaching.

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 139 million.

So for those of you still waiting to file, make a payment or with other questions, a few answers: file on time. The interest rate is 5% per year through June 30. Starting July 1, it drops to 3% per year. Interest is compounded daily for refunds. Any refund issued after July 1 will get a blended rate. to the pandemic. Accountants and tax preparation services say they have a variety of means to help people prepare their taxes without meeting face to face. professional for answers to your specific question.

One worth noting is that July 15 is also the deadline to claim a refund for 2016 tax returns. An estimated $1.5 billion refunds for 2016 are sitting unclaimed because people failed to file tax returns. The law provides a three-year window of opportunity to claim a refund. But if taxpayers do not file a return within that time, the money becomes property of the Treasury. There is no penalty to file a later return if a refund is due.

It’s also a good time to check in with a tax professional if you have had a major shift in income, employment or other tax situations.