There's Still Time to File Your Taxes

The federal tax filing deadline has been postponed to July 15 to allow taxpayers more time to cope with the economic chaos caused by the Covid-19 pandemic. Quarterly tax payments have also been extended: payments due on April 15 and June 15 can now be paid by July 15, without penalty. More states are starting to push back their filing dates as well following massive layoffs and business closures.

For federal taxes, according to the IRS site, taxpayers can defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. 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.

As reported on the IRS page, taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional. Businesses who need extra time must file Form 7004.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.

Maryland has done the same, giving residents until July 15. However, the state says Comptroller Peter Franchot could extend these deadlines further, due to prolonged economic distress caused by the coronavirus pandemic.

Margaret Tabb, a tax preparer at the nonprofit Maryland Tax Relief Clinic in Owings Mills, wouldn't be surprised if the deadline changes. "I think they're going to have to go back and re-evaluate it. Based on how long the coronavirus is still going to continue to affect everybody," she says, in an article published on wamu.org in early April.

"We're hopeful if we open by June 1, we'll have even more weeks left in the tax season than we would've had when we had to close," says Teresa Hinze, the executive director of Community Tax Aid, which helps low-and-mid-income Washington-area residents file their taxes. Hinze says she and her team are looking into helping prepare returns through phone calls and mailed forms if the shutdown continues into July.

Bounds Accounting & Tax Services, LLC offers tax preparation and planning services for individuals, businesses, trusts, and non-profit organizations. We will work with you to minimize liabilities and maximize returns. If you have received an IRS or state notice, we can contact the IRS on your behalf to help resolve your tax problems.

Let us take care of your tax needs, personal or business, so you can focus on what's important to you! Contact us today to schedule your appointment.