With everything that is going on across the country right now, the federal government is making certain concessions to help the public. One of them has to do with the IRS and income taxes. The news reports may not have been clear enough, and as a result, taxpayers here in Massachusetts and elsewhere could end up in trouble with the IRS.
The deadline to pay taxes is moved 90 days from April 15. However, federal income tax returns or a request for an extension must still be filed by April 15. What this does is allow people who owe an additional 90 days to pay the amount due without fear of incurring penalties or interest. All other deadlines remain intact.
In recent reports, Treasury Secretary Steven Mnuchin encouraged individuals who will receive a refund to file their returns as soon as possible. This could provide additional funds needed while many individuals are not at work due to recent events. Individuals who owe up to $1 million can defer their payments for up to three months. The prevailing logic is that this should cover taxpayers who own small businesses. The question each one will need to ask is whether it would be advantageous to take advantage of this payment extension.
Before anything else, it is important to remember that the extension is for payments only. Taxpayers still need to file their federal income tax returns with the IRS by April 15 unless they file for a six-month extension. To help determine whether delaying payment would be worth it, Massachusetts residents may benefit from consulting with a tax attorney. Most likely, tax attorneys here and across the country are diligently keeping up with the changes as they occur.