July is here already, and that means that July 15, the deadline to file and pay your taxes, is approaching as well.
As you may remember, the original deadline was April 15, but it was extended to July 15 to help those affected by the outbreak of COVID-19. The Internal Revenue Service (IRS) has announced that the date won’t be moved again, so it’s important to take steps to file and pay your taxes if you haven’t done so yet.
Extensions to File
People who can’t file their taxes by July 15 can ask for an extension that allows them to file by October 15. It’s important to remember that an extension to file is not an extension to pay. That means that you still have to pay your taxes totally or partially before July 15. There are two ways to request an extension.
- Filing form 4868, Automatic Extension of Time to File U.S. Individual Income Tax Return.
- Paying all or part of their tax due indicating that the payment is for an extension.
In both cases, don’t hesitate to seek the assistance of a tax professional if you need help completing any of the steps involved.
The Options for People who Can’t Pay Their Taxes by July 15
On the other hand, people who can’t pay their taxes by July 15 also have several options available to them. These alternatives include:
- Online payment agreement: They are available for individuals who owe $50,000 or less (including taxes and penalties).
- Installment agreement: People who do not qualify for an online payment agreement, or decide not to use it, can take advantage of this option.
- Temporarily delaying collection: If the IRS determines that a person can’t pay, they can decide to temporarily delay the collection process. However, keep in mind that penalties and interests continue to accrue until the full amount due is paid.
- Offer in compromise: In some cases, the IRS may reach an agreement to allow a person settle their tax bill for less than the amount they owe. To know if you are eligible for an offer in compromise, use the official IRS tool Offer in Compromise Pre-Qualifier.
It’s important to keep in mind that the July 15 deadline refers to federal taxes. The dates for state taxes may differ, so be sure to get accurate information about your specific location. Here you can find links to the websites of the tax agencies of every state.
Get Help From the Tax Experts at JT Tax Services
Now that you have all the relevant information, you are ready to make better decisions before filing and paying your taxes. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.
At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.