x
Breaking News
More () »

Tyler's Leading Local News: Weather, Traffic, Sports and more | Tyler, Texas | CBS19.tv

2020 Tax Day is July 15: What to know if impacted by COVID-19

The 2020 tax deadline is less than a week away. If you've been financially impacted by COVID-19, there are payment plan options.

TYLER, Texas —

The deadline to file taxes is Wednesday, July 15. According to the IRS, the date was moved from April 15 to July 15 due to COVID-19. 

"There was talk of extending it again, however, they did not," said Jennifer Reynolds, a CPA and lecturer of Accounting at UT Tyler.

According to Reynolds, the deadline means filing and paying taxes on time to avoid penalties. Although the July 15 deadline to file taxes is already set, it can be moved on an individual basis. 

Filing an extension

"Anyone can qualify for that," Reynolds said. "It's an automatic extension that you can get until October 15, but you do have to file the extension form by next Wednesday, July 15. That is just an extension of filing your return, it does not extend the time to pay any taxes that are due."

Filing can be completed online or through a paper return. 

The extension would give someone an additional three months to file taxes, but not when it comes to paying taxes. 

Payment options

For those financially impacted by COVID-19, payment options are available. 

"IRS has ways that you can make payments and things like that," Reynolds said. "They will work with you, especially right now, because of COVID so many people are unemployed. There are quite a few programs where they're willing to work with you, whether it be through installment payments or what have you."

There are options for short term and long term payment plans, but each result in penalties and interest. 

Short-term Payment Plan (120 days or less)

  • $0 setup fee
  • Plus accrued penalties and interest until the balance is paid in full

After applying for a short-term payment plan, you can pay the amount owed directly from your checking or savings account (direct pay) or by check, money order or debit/credit card.

Long-term Payment Plan (Installment Agreement)  (Pay in more than 120 days with monthly payments)

Pay monthly through automatic withdrawals

  • $31 setup fee (low income: setup fee waived)
  • Plus accrued penalties and interest until the balance is paid in full

Pay amount owed through Direct Debit (automatic payments from your checking account). Also known as a Direct Debit Installment Agreement (DDIA). This is required if your balance is more than $25,000.

Pay each month (non-Direct Debit)

  • $149 setup fee (low income: $43 setup fee that may be reimbursed if certain conditions are met)
  • Plus accrued penalties and interest until the balance is paid in full

After applying for a long-term payment plan, pay amount owed through non-direct debit (not automated) monthly payments, including payments directly from your checking or savings account (direct pay) or by check, money order or debit/credit card.

RELATED: Supreme Court rules Manhattan DA can obtain Trump tax records, but Congress can't for now

RELATED: Warren Buffett makes annual donations worth $2.9B to 5 charities

RELATED: NO MORE DELAYS: What to know about the July 15 tax deadline

RELATED: July 15 tax deadline won't be postponed again, IRS says