As a part of the Coronavirus tax relief, the IRS has extended the tax filing and payment deadline.
In order to aid taxpayers, the tax filing deadline was extended. The IRS has stated that they are working with the Treasury and with Congress to help individuals during this time.
Many taxpayers will wonder if this new tax deadline has any limitations based on your tax situation.
Does this deadline apply to everyone?
This IRS has announced that this new tax deadline will apply to every taxpayer for the coronavirus tax relief.
This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.– IRS
In other words, tax payments originally due on April 15, 2020, are now due July 15, 2020. Luckily, as a part of the corona tax relief, the IRS will not penalize you regardless of the amount you owe. Just make sure you pay by July 15.
Do you need extra time to file?
As a part of the coronavirus tax relief, If you’re not ready by July 15, individual taxpayers can request a filing extension by filing Form 4868.
Businesses who need additional time must file Form 7004.
What isn’t affected by the new tax deadline?
The only thing not affected by this new tax deadline is the time frame to claim your prior year tax refunds. The IRS has the three-year statute of limitations set in stone for prior year refunds 2016, 2017 and 2018.
Here are the deadline dates to claim these refunds:
- 2016: File and postmark your return by April 15, 2020
- 2017: File and postmark your return by April 15, 2021
- 2018: File and postmark your return by April 15, 2022
If you’re confused as to why these refunds are not extended, the three-year statute of limitations apply to the original tax deadline when these tax years were due.
Those affected by the Coronavirus
If you’re a small business owner, an employee, or know someone who has taken a toll during this time, you may be entitled to payroll tax credits.
Due to the Families First Coronavirus Response Act, small and midsize employers may receive two new refundable payroll tax credits. This will reimburse them for providing Coronavirus-related leave to their employees for their health needs or to care for their family members.
However, this applies to businesses with fewer than 500 employees. This way, business owners can keep workers on their payrolls without laying employees off.
Here’s what it covers:
Paid sick leave for workers relating to COVID-19
- Employees receive up to 80 hours of paid sick leave at 100% of their pay of the employee must quarantine or experiencing symptoms and getting medical attention
- Employees who must care for someone under quarantine, a child whose school/child care provider is unavailable due to COVID-19, they may receive paid sick leave up to 80 hours and 2/3 of their pay
- In some cases, if an employee cannot work due to their responsibility to take care of a child whose school/child care provider is closed, may receive an additional ten weeks of expanded paid family/medical leave
- Employers are not subject to payroll tax liability
- Employers receive 100% reimbursement for paid leave
- Health insurance costs included
- Self employed individuals receive a similar credit
Small Business Protection
Small businesses with less than 50 employees can be eligible for an exemption from the requirements to provide leave for taking care of a child. This only applies if the business will be directly affected.
Additionally, the IRS will issue reimbursements as soon as possible. For more information on the corona tax relief from the IRS, click here.
Do you need to complete your taxes?
During this time, it’s safer to stay indoors and avoid contact with others. Rest assured, we offer professional review services to review your tax return.
For basic returns, you can create an account for the tax year you’re filing, type in your tax information and pay for your account. Then, we can e-file your current year tax return. For prior years, we provide you with a PDF for you to print, sign, and mail to the IRS/state.