IRS Update: What You Need To Know
There have been so many changes to our everyday lives since the global spread of the Coronavirus has hit closer to home. We are adjusting to this new “normal” as more and more areas of our lives are affected. The TaxBandits team is working to stay informed of any changes that could impact your small business.
While taxes are generally one of the things in life that you can rely on being constant and unchanging, there may be some changes to the deadlines this year. There has been a lot of buzz over the past few days about which tax form deadlines will be extended and for how long.
As of now, here is what is officially known.
Taxpayers must file their personal and business income tax returns by April 15. However, the IRS will waive penalties and interest on tax payments for 90 days.
(Edited: BOTH income tax payments and income tax return filing has been pushed back from April 15, 2020 to July 15, 2020.)
The Personal Income Tax Deadline
Income taxes for individuals with up to $1 million or in tax liability will not be charged any penalties for 90 days following the April 15th deadline.
What Does This Mean?
This means anyone filing their personal tax returns that owes less than $1 million to the IRS can defer their income tax payment for 90 days following April 15. While the deadline for tax payment is being extended, your income tax return will still need to be filed by April 15th.
To extend the deadline for your income tax return, you will need to file a traditional extension on or before April 15, 2020.
This is especially important information for sole proprietors that report their business information on their personal income tax return.
The IRS and the federal government encourages any individuals that expect a refund to file their tax return by April 15.
(Edited: BOTH income tax payments and income tax return filing has been pushed back from April 15, 2020 to July 15, 2020.)
The Corporate Income Tax Deadline
Income taxes for corporations owing $10 million or less in tax liability will not be charged any penalties for late payment for 90 days after the April 15, 2020 deadline.
What Does This Mean?
This means that corporations with less than $10 million are able to defer their income tax payment for 90 days after April 15, 2020. Again, this additional time only applies to your income tax payment. Income tax returns must still be filed to the IRS by April 15, 2020.
Corporations that need additional time to file their income tax return will need to file a traditional extension on or before April 15, 2020.
(Edited: BOTH income tax payments and income tax return filing has been pushed back from April 15, 2020 to July 15, 2020.)
You Can Count On TaxBandits!
Here at TaxBandits the only thing that we love more than taxes, is helping small businesses. We will continue to monitor all IRS updates and keep our clients updated to any changes that will impact their business. The TaxBandits team will also continue to provide easy tax e-filing at a great price.
If you need to file an extension for your income tax return, TaxBandits has your back. You can easily file an extension Form 4868 for your personal income tax return or an extension Form 7004 for corporate income tax returns using TaxBandits. Our cloud-based software makes the process quick and easy. Within just a few minutes you can get an additional 6 months to file your return. Get started today!
