Paper Tax Return: The IRS Will Not Open Your Mail Right Away
IRS Paper Tax Returns are just another item on the list that coronavirus is affecting our lives? The Internal Revenue Service has completely flipped a switch on its priorities, and it is not even looking at paper tax returns that are being sent to it. The idea of all those envelopes piling up somewhere is a bit mind-boggling, but it’s apparently what’s happening as the Treasury Department focuses on generating the stimulus checks that American taxpayers need to get through the crisis.
Tax Payments Are Not Due Until July 15th
When you file a paper tax return and when you don’t owe the IRS money, this shift won’t mean much to you. This is also true when you’re not looking to amend a previous tax return. Rest easy that tax return and payment that would have been due in April are now not due until July 15, 2020. However, those taxpayers hoping to get a refund via a return, pay attention. Or, you need to amend or you already amended), pay attention. And, if you owe the IRS money, pay special attention.
Should I Resubmit My Amended Return?
For folks with amended tax returns – what you need to know is that you’re not likely to see any kind of response for quite a while. There’s no way to find out what the status is and the agency is advising people not to interpret the lack of response as a need to send in a new one. To file a paper tax return twice would just confuse things more. You need to sit tight and keep all your documentation and proof that you did file.
Do You Owe the IRS Money?
If, however, you owe the IRS money from before the Coronavirus crisis, there are no breaks on the penalties and interest that are stacking up. It may take the agency a while to get around to figuring it out, but if you decide to sit and wait ‘til you hear from them, you’re going to be in for a big shock. Your liability is not only still there, it’s adding on interest from the time that it was due. This is true on amended returns that reflect a liability as well. So we suggest you file electronically, so you can have the ball rolling and file as soon as possible.
How much could the interest and penalty add up to?
In a word – interest and penalties add up to a lot of money. Not only do you owe the original amount, you are also subject to accruing interest and a failure-to-pay penalty of 0.5% of your original liability for each month (or partial month) that it hasn’t been paid. That can rack up to 25% of the liability all because you chose to file a paper tax return. For those who fail to file on time, there’s also a penalty. That penalty can add up to another 5% of the amount that you owe each month. Some people can’t afford to pay your entire liability all at once. You’re much better off paying a little over time. Don’t wait and to add all of that interest to your debt. Contact the IRS online to arrange for one of their installment agreements or call the IRS immediately at 1-800-829-1040 to work something out.
A Mountain of Tax Returns Are Piling Up
Remember that mountain of returns piling up somewhere? Keep that in mind when you’re ready to send the IRS your money. When you write a check to the IRS it’s going to just sit there. Your interest is going to keep adding up. Opt for paying electronically via direct payment. Don’t worry about the fact that the paperwork is sitting in that big pile. The agency will eventually get around to going through it. They’ll figure out which payment goes with which amended return.
Did You File a Paper Tax Return?
If you have any questions about your old tax bills or current IRS operations, please contact Alex Franch at 781.789.7200. Worthtax is currently accepting appointments to help you file your tax return. The tax filing due date is now July 15, 2020. Don’t wait, expecially if you believe you will owe the IRS money. Go online and schedule your appointment now. Also, we have the capability to hold virtual engagements with you by way of our Client portal for Secure file sharing E-Signing Expert.