Pamela Cruz. Peninsula 360 Press [P360P].
Like every year, millions of people in the United States are immersed in a world of paperwork to file their tax returns on time, which usually has a deadline of April 15, but not this year, because all taxpayers will have until May 17 to complete the tax process, so at least they will have a month's respite.
This extension of the due date for filing federal income tax returns for individuals for tax year 2020 is in support of all taxpayers who, due to the COVID-19 pandemic, have been affected.
That's according to Kenneth Corbin, commissioner of the W&I Division of the Internal Revenue Service, who added that so far, the filing season is "going well.
"Our focus as the pandemic continues is to help taxpayers and the tax industry in a way that ensures the safety of our employees, taxpayers and the communities we serve," he stressed during a briefing held by Ethnic Media Services.
The head of the administration of tax laws governing physical taxpayers in the U.S. said those who file their returns by May 17 will not be penalized or charged interest, regardless of the amount owed.
However, the extended deadline does not apply to filers such as corporations and even individuals making estimated tax payments, who must still have their tax year completed by April 15.
The official said those who need more time can always request an automatic extension to file until Oct. 15 by filing Form 4868 through their tax professional, tax software or through IRS.gov.
While filing Form 4868 gives taxpayers until Oct. 15 to file their 2020 tax return, it does not grant an extension of time to pay taxes owed, so individuals must pay their federal income tax by May 17, 2021 to avoid interest and penalties.
"The deadline to apply for an extension is also May 17, 2021, but this would be an extension to file the return. It is not an extension to pay personal income tax, but the payment must be made by May 17," Corbin said.
Similarly, he explained that although there is an extension of more than a month for the filing of taxes, this procedure should be done as soon as possible.
Tax service also improves
Kenneth Corbin said that to improve the filing experience - which many hate - as well as to get a refund in less time, the first step is to gather all the documents and file an accurate statement, then choose to e-file with direct deposit.
"We know that even with the vaccine being implemented, many people are not comfortable going to a brick and mortar office and dealing with their tax preparers. We encourage them to file online and choose direct deposit. It's the fastest way to get your return processed, and if you're due a refund, you get it," he added.
It is worth noting that the tax process began last February 12 and so far, the IRS has received 85 million individual returns, of which 76 million have been processed and more than 56 million refunds have been issued, which means almost $164 billion dollars.
Stimulus checks
The IRS Chief Taxpayer Experience Officer noted that in 2020, more than 160 million economic stimulus payments were sent in the first round of payments, and another 147 million in the second round, just two days after the legislation was signed into law in Congress.
In the third round, he explained, more than 130 million payments worth approximately $335 billion in direct deposits, paper checks and debit cards have been sent.
"Most people received the full amount of both payments and don't have to write anything about them on their 2020 tax return this year; and anyone who may be eligible for a check, but hasn't yet received one or didn't receive the full amount can claim it when they file their 2020 tax return," Corbin noted.
Corbin said that, for the 2020 tax year, unemployed people who received unemployment benefits of up to $10,200, and couples who jointly received up to $24,400, will not have to pay taxes on those amounts.
In the case of retirees, he noted that a provision was included in the CARES Act that was effective until December 15, 2020 that allowed retirees to withdraw money from their retirement accounts without penalty during the pandemic.
However, he explained that in the case of unemployed individuals, the IRS is aware that there are many people whose identities have been compromised and fraudulent unemployment compensation claims have been issued in their name.
"We are working with our state partners, along with a number of law enforcement agencies to help find these individuals who have taken advantage of our vulnerable population, but we are just saying that taxpayers file only an accurate return and that it is truly theirs," he said.
Finally, he explained that the tax system, for the first time this tax filing season, has experimented with an initiative that helps those people who are not fluent in English, which is why they have established the LEP -Limited English Proficiency- agenda, which, through the 1040 form, allows you to select among 20 different languages to receive all your tax documentation.
Susan Simon, director of the Client Assistance, Relationships and Education (CARE) organization, said that among the actions the IRS is taking to get closer and improve the taxpayer's experience when filing a tax return is to offer a series of providers that will provide free electronic filing for federal tax returns if you earn less than $72,000 a year.
He also noted that there is support for those who have little or no computer skills, as well as for those who do not have access to a computer and only have a smartphone, in addition to tax advice for seniors, programs that are operated by volunteers across the country.
On the other hand, he explained that the IRS has a database, by city, where taxpayers can find professionals, licensed, who can perform the necessary procedures to file the tax return.
In that sense, he alerted taxpayers to be aware and stay away from those who say "I'm going to get you a thousand dollars more - a refund - than anyone else".
"That's a lie! Don't get carried away by commercials that promise more money for your refund. There is no such thing. If you file correctly, you're going to get the right refund. No person, no service is going to find you more money if you do things incorrectly," he said.
He explained that you can recognize a scam like this because the IRS always sends a bill to the taxpayer, but they will never call them or email them first. "We're going to send them a bill and then 30 days later, usually, we're going to send them another bill. We're going to say, 'Hey, you forgot to pay us!'"
But he explained, "We're not going to call and say you made a mistake on your tax return and you owe $1,200 and we need to verify your personal information and we can fix it for you. We don't do that at all. We don't call people and tell them we're going to set up a payment plan."
Susan Simon reported that many of these scams have also been directed at college students, who, upon seeing an email that claims to be from the IRS and features IRS logos, access it and click on links, which always end in scams.
He also warned that scammers make phone calls saying they are talking about the money you owe the IRS and that if you don't pay immediately they will send the police to arrest you, where they even play patrol car siren sounds in the background.
"No, we don't do that. We never do that. You should hang up immediately. Don't say anything, anything that is said on the phone can be recorded and used in another context, be very careful with those calls," he said.
