After a three-month delay due to the COVID-19 pandemic, tax day is finally nearly here. And despite rumors from a few weeks ago that tax day could once again get extended by another couple of months into the fall as cases rise across the country, July 15 it is.
Interestingly, it’s the first time in U.S. history that tax day has been moved from its traditional April 15 day, but the IRS hasn’t exactly been doing nothing in the meantime. As you may recall, it sent out tens of millions of stimulus checks to qualifying Americans in April as part of the multi-trillion dollar CARES Act that was passed in late March. There’s talk that it may be sending out even more checks to qualifying Americans later this summer, but that’s a topic for another day.
With the deadline to (finally) file your 2019 income taxes looming, we thought it would be fitting to put together a little cheat sheet for any last minute filers. Here’s a closer look:
You Can Still Get an Extension
Though the Treasury Department didn’t extend the tax filing deadline beyond July 15, you can still qualify for a three-month extension if you’re not ready to file your taxes quite yet. Be sure to file Form 4868 and you’ll have until October 15 to officially file your taxes. You’ll just want to be sure you get your taxes all squared away or else risk penalties. Remember, getting an extension doesn’t mean that you won’t eventually have to still pay what you owe to Uncle Sam.
Expect a Delay
The IRS was impacted by the coronavirus too, specifically in that it stopped processing paper tax returns in March in an attempt to keep people safe. It has again resumed processing paper returns as mail is deemed to be a low-risk activity, but it still has quite the backlog to work through thanks to its pause. So if you’ve already filed – or plan to file – a paper return, be patient. Your refund is on the way, but it’s likely to arrive later than you would normally receive it.
You Might Receive a Bonus
Yes, you read that right – the IRS may be paying you interest on individual refunds if they’re filed before July 15. So while you might normally bemoan the fact that any refund you receive was basically like giving an interest-free loan to the government, this might be your year to make good on that. You’ll likely be paid interest on your refund from the original filing date of April 15 to the date the refund is processed. The IRS’ interest rate for the second quarter is 5 percent, and for the third quarter is 3 percent. In other words, waiting to file might have paid off for you – literally.
