The global COVID-19 pandemic is affecting the economies of almost all countries including the United States. The IRS understands the impact of the global crisis on individuals and companies which is why it is helping taxpayers with different tax issues to get over these hard times. If you are facing tax issues and looking for IRS tax relief, it is advisable to consult an IRS tax attorney. The Treasury and IRS are working closely with the government to provide relief to the American people. Continuing on the topic, in this blog post, we present some important info for taxpayers during the COVID-19 crisis. Take a look.
Keeping the global pandemic in mind, the Treasury Department and IRS (Internal Revenue Service) have extended the federal income tax filing due date to July 15, 2020, from April 15, 2020. Taxpayers can now defer income tax payments till July 15, 2020, without attracting interest and penalties, regardless of how much they owe.
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There is no need for taxpayers to fill any additional forms or call the IRS to qualify for automatic federal tax filing and payment relief. Individuals who can’t file taxes within the given time have to fill Form 4868 to request a filing extension and businesses need to fill Form 7004. It is advisable to consult an IRS tax attorney for help if you are unsure as to how you can proceed.
Economic Impact Payments
Economic Impact Payment is the stimulus payment authorized under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). It is an automatic payment for most taxpayers who have filed their returns for 2018 and 2019, mostly retirees and seniors. If you are eligible, you can use the IRS Help Tool to figure out how to get your payment. There are two types of taxpayers that can benefit from economic impact payments. They are:
If you have filed the tax returns for the year 2018 and 2019, you just need to download the “Get My Payment” application. Enter your bank account details and confirm your payment type to get the money directly credited into your account. If you have an updated bank account or mailing address, you can use “Get My Payment” option to provide details of where to send the direct deposit.
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If you are a non-filer, you can navigate to the “Non-Filers: Enter Your Payment Info Here” option to provide the information needed to get the payment. You can use this route only if your gross income is less than $12,200 ($24,400 for married couples) and you didn’t file a 2018 and 2019 federal tax return or you weren’t required to do so due to some other reasons. You don’t need to use this application if you have received any of the following benefits before:
- Railroad Retirement and Survivor Benefits
- Recipients of Veterans Affairs benefits
- Survivor benefits, Supplemental Security Income (SSI)
- Social Security retirement, disability (SSDI)
People in this group can claim a $500 payment per child if they have a qualifying child under age 17.
The IRS is helping taxpayers during the COVID-19 crisis with efforts such as Economic Impact Payments. If you are facing unfiled tax returns and looking for IRS tax relief, reach out to our team of experienced tax attorneys in Dallas, Texas for IRS debt problem resolution. We can help you with the resolution of tax issues. Contact the Law Offices of Nick Nemeth by calling (972) 484-0829, or fill out our contact form and we will take it from there.