July 15 extended deadline for taxes approaches

With the onset of COVID-19 in the spring, the federal government postponed the traditional April 15 filing deadline until July 15.

The extended deadline provided some economic and logistical relief for taxpayers dealing with the disruptions and uncertainty brought on by lockdowns, school closures and shuttered businesses, reports the Associated Press.

Quickly approaching next week’s Wednesday deadline, taxpayers must file or seek an extension by the new deadline or face a penalty.

The IRS is expecting about 150 million returns from individuals and as of last count, it had received almost 139 million, reports the Associated Press.

Among the questions being asked are “Do I have to? If I can’t pay now, what do I do? What about refunds? Can I do this online?”

In most cases, yes, everyone must file and pay taxes by July 15. Taxpayers who need more time can request an extension on the IRS website, which will give them until Oct. 15 to file, according to reporting by the Associated Press. However, an extension to file does not mean added time to pay. Those planning on filing later should estimate what they owe and make that payment by July 15.

For individuals worrying about paying at the moment, it is recommended that they go ahead and file taxes, even if they cannot pay. The IRS is willing to set up payment plans or make other arrangements with taxpayers who cannot pay in full, and many will find that the penalty for not filing will be more expensive than not being able to pay right away.

The IRS is still processing and issuing refunds, most within 21 days, reports the Associated Press. Those getting refunds will be paid interest, dating back to April 15, if they file on time. Online is also an option for those wishing to file or pay taxes virtually.