NATIONWIDE — The tax filing deadline for 2020 is coming up soon.
The IRS extended the deadline from April 15 to July 15 due to the coronavirus pandemic.
According to Eric Pierre of Pierre Accounting, you can still file to get a 90-day extension. But if you owe taxes, you need to make a payment to the IRS by July 15 to avoid penalties and interest.
However, if you are owed a refund, there is no penalty for filing after the deadline.
“So if I owe $10,000 on my 1040, I’d need to pay by July 15, even if I filed an extension,” said Pierre. “Now if I have a refund for $5,000, I don’t have to file it on July 15.”
Even if you are getting a refund, there are still good reasons to file on time.
“If you have a refund, we tell people to file it as fast as possible because with COVID-19, the IRS has had some office shutdowns and they’re just now reopening. So refunds have still been processing at a slower time this year.”
Pierre also suggests having your refund direct deposited to avoid and further delays. If you owe taxes, he recommends that you make your payment electronically.
“We just read a horror story of a tax payer that sent a check while the IRS office was closed. The IRS sent a following letter for penalties and the IRS never cashed it,” said Pierre. “So if you’re gonna make a payment, pay electronically because then their system receives it immediately.”