The COVID-19 pandemic has affected a variety of things including taxes. These COVID tax tips can help you prepare and meet your obligations without penalty.
As many people already know, the IRS has delayed payment and/or filing due dates in 2020 and 2021 for income taxes. Additionally, the IRS has made available IRS Free File and other resources until October 15th for 2020 tax returns for people who requested an extension.
Recently, the IRS issued a reminder to taxpayers who filed for extensions for their 2020 returns.
Pay What You Owe, Even If You Haven’t Filed on Time
There is no penalty for filing taxes after the initial deadline passes when a taxpayer is due a refund. However, any tax money due to the IRS must be paid by the deadline to avoid incurring fees and other penalties. It’s important to file taxes as soon as possible and pay any balance due to avoid additional interest and penalties.
Even if the amount due is unaffordable, it’s better to file as soon as possible to avoid further penalties.
Tools available to help taxpayers deal with their 2020 and 2021 taxes include:
- IRS Free File and other e-file options that allow you to file using the IRS’s free tax return preparation site
- Direct deposit for refunds that offer the fastest and easiest way to get your refund
- Online payment options that make it easy and convenient to pay any money you owe, including penalties and interest applied for not filing on time
- Account information and tax records that let you view your payment history, your balance owed, and your general tax records
Also, keep in mind, not everyone has the same deadline for filing taxes. For example, some military service members and eligible support personnel serving in combat zones and people who have a valid extension due to their living in a federally-declared disaster zone might have more time to file.
Contact a Covid Tax Expert If You Have Questions
To learn more about what you can do if you have past-due taxes or you have questions about extensions or anything else related to taxes and COVID-19, contact the Law Office of Robert M. Geller at 813-254-5696.