We’ve compiled some frequent questions and answers to common tax concerns during these uncertain and rapidly changing times. If you have a questions that you don’t see answered here, please get in touch with us!
Will my tax refund be delayed until July 15?
No, the IRS is still processing refunds. In addition, Illinois will continue processing refunds. If you are expected to receive a refund, make sure you elect to receive it electronically via direct deposit vs. check in the mail.
Do I need to file any forms to use the July 15 deadline?
No. If you file a tax return or an automatic extension request and pay your tax due by July 15, no interest or penalties will be due.
I owe a 10% penalty on a withdrawal I took from a retirement account last year. Is the deadline to pay it now July 15 instead of April 15?
Yes, this deadline is postponed as well.
I already filed my 2019 tax return and scheduled an automatic withdrawal of my tax payment for April 15. Will the IRS automatically delay this payment until July 15?
Unfortunately, no they will not stop collecting, but you can take action to stop them. You can contact the U.S. Treasury Financial Agent at 888.353.4537. Cancellation requests must be made no later than 11:59 p.m. ET two business days before the scheduled payment date. If you used your credit card for automatic payment, you should contact your card company to make this change, immediately.
What if I need more time to file my 2019 tax returns?
Individuals can ask for an automatic extension of time to file, but NOT pay) by filing FORM 4868 by July 15. The deadline to file returns remains October 15, 2020.
I see that the first-quarter estimated tax payment due on April 15 is now due on July 15. What about the second-quarter payment, due June 15?
As of now, the second-quarter payment is still due on June 15. This could change, so watch for further announcements.
What changes are happening with the IRS and their collections process?
The IRS will suspend any liens and levies initiated by field revenue officers during this period. Field revenue officers will continue to pursue high-income nonfilers and may perform other similar activities.
Is my deadline to contribute to an Individual Retirement Account, Roth IRS, Health Savings Account or Archer MSA also extended?
Yes, these deadlines are delayed to July 15 from April 15.
What if I am currently on an installment plan with the IRS?
The IRS is suspending payments due on existing installment agreements from April 1 to July 15, but interest continues to accrue on the balance. New installment agreements for people who cannot pay their balance due continue to be available on the IRS website.
What doesn’t qualify for the IRS’S three-month delay?
Estate and gift taxes, excise taxes, information returns such as 1099 form, and payroll taxes (this may change based on what Congress passes). Tax items that don’t have April 15 deadlines such as the March 16 due date for partnership returns, don’t qualify for the extension.
*Some of these questions were noted in the WSJ article dated 3/25/20 as well as from the IRS website in their FAQ section, and Journal of Accountancy.