In March, the IRS and US Treasury Department announced that it was automatically extending its federal income tax filing due date three months in response to the coronavirus pandemic.
Taxpayers were also able to defer federal income tax payments due on April 15 to July 15 without penalties and interest, regardless of the amount owed. But Larry Schwartz, an IRS certified tax preparer, said those changes didn’t apply to everyone.
“Some types of businesses are required to file by March 15 and those rules didn’t change till March 21,” Schwartz said.
For those who didn’t fall into that category and with the deadline approaching in less than three weeks, individuals and businesses who haven’t filed taxes or made plans to send in payments are running out of time.
Schwartz said people can still file for an extension, but that only applies to filing as payments are due July 15. And the extensions are only for three months until Oct. 15, which is equal to the same six month time frame typically given from the annual deadline of April 15.
He said the actual filing of tax returns and credits remain the same, but that it was just pushed back three months. Unfortunately what Schwartz has seen is that people are still waiting till the last minute.
“As soon as people heard July 15, they put everything aside,” Schwartz said.
While it’s usually a mad dash to the April 15 deadline, even with the extra three months, Schwartz has been busy right along through his personal tax preparation business and free VITA site in Peterborough for those who make $65,000 or less. That’s because due to the pandemic, a lot of the free preparation sites around the state and beyond shut down due to COVID-19. And with all the extra precautions put in place, it has led to more work for each return.
“It’s more tedious, a little more time consuming,” Schwartz said.
Nisa Simila, communications and Money Matters coordinator at the River Center in Peterborough, said things have been difficult since the Stay At Home orders made them transition to a virtual model for preparing.
“It’s not ideal for people, especially those with technology limitations,” Simila said. “And right now there’s a lot of panicked filers.”
She said before the Gov. Chris Sununu announced the orders they were very busy – even more than last year – but it slowed down since with the filing deadline pushed back and those unable to do things online.
The River Center held a drive thru drop off on Saturday and Simila said she is hoping to add another event before the deadline, but is still trying to figure out all the details. For up to date info, email taxes@rivercenter.us.
Schwartz said that nothing has changed for those who have waited to file, but expects 2020 returns to be unlike any other.
“It will absolutely be more difficult, but I can’t tell you it’s going to be two times more difficult or 10 times more difficult,” he said. With those who typically come in with business gains, possibly coming in with losses and factoring in many of the relief programs, he is unsure of how it will work out.
“I don’t understand all of it, but I will,” Schwartz said.
But as far as this year is concerned, Schwartz is reminding everyone of one thing: don’t wait till July 14. To contact Schwartz, call 525-3068.