No More Delays: What To Know About The July 15 Tax Deadline

Speaker 1: 00:00 It's tax day, a few months late as the COVID-19 pandemic. First surged in March Congress extended the tax deadline this year from April 15th to July 15th. Now it's here Rafael Talena media relations director for the IRS in San Diego, joins us to discuss the ins and outs of this year's tax day. Rafael, welcome to midday edition. Speaker 2: 00:22 Thanks for having me always, uh, always enjoyed it. Yeah. Speaker 1: 00:24 Well start with the, what advice you have for someone who might be trying to file today in the Nick of time, Speaker 2: 00:29 Right? If you haven't filed yet, the easiest and the best thing to do is always, as a matter of fact, is if we're talking like it's April 15th is to get to a computer and e-file and choose direct deposit and do a paperless tax return. But this year, especially because, you know, the, the pandemic ha happened toward the end of March there. So we had this law that came along and had us issuing 160 million economic impact payments at the same time, or we're trying to administer a tax filing season. And then on top of that, a lot of employees come out about all of us, really trying to follow all the guidelines for safety and all these things and guidelines and rules for COVID-19. So a lot of paper piling up if you will, because we pretty much shut down for several weeks. Phone lines are limited, all that. So the bottom line is going back to what I was saying is try to get to a computer and file and use technology you're at advantage because if you file by paper, it's going to be really a more of a delay than normal, uh, in terms of processing the return and getting your refund back. And so, uh, some wise words, at least here in 2020, which not necessarily a normal year, and at the same time, we're trying to catch up. Speaker 1: 01:36 I saw a report where some 50,000 IRS workers are working from home, tens of thousands have returned to the office. And unfortunately, uh, I noted that the 300 IRS workers tested positive for COVID-19 and 80 have died. It's really affected the IRS. How far behind did the IRS get in processing filings and refunds due to the shutdown this year? Speaker 2: 01:57 Right? You could see what you're saying is highlighting a balance in terms of, uh, trying to keep employees safe and providing, uh, a safe workplace considering the climate we're in at the same time, on the other side of it getting processing of returns and getting refunds and getting people's money back to them as quick as possible, especially in a year when a lot of people need it. So it's, it's quite the balance there. The effect on us has been, uh, uh, you know, good and bad, uh, in terms of, uh, getting things together. It's, uh, you, you, you kind of do things differently at the same time. Uh, you know, you show your, um, your flexibility if you will, but at the same time, in terms of employees and slowly reopening and all that, we're I guess, continuing to ask for patients Speaker 1: 02:36 Now, organizations that normally assist people with their taxes have also been limited by how much they can help due to the pandemic. Have you heard about impacts of that Speaker 2: 02:44 Here locally? Yeah. Volunteer income tax assistance sites, uh, big partners here in the County, uh, all have been affected in some way, shape or form. Some have opened and reopened virtually, uh, some have drive like a drive through kind of thing. So there, there are ways to get those to get that assistance, but certainly it's definitely the minority, if you would, in terms of the amount of that help it's available. So that's why we're seeing an increase in self preparation at home on your computer, which is up about 11% this year, which is a lot more than normal, but at the same time, the pandemic has forced us all into changing some habits. So perhaps some good ones there, uh, depending on who you are and what your situation is, Speaker 1: 03:27 Despite the extension, people still aren't able to get their taxes done by the end of today, what should they do? Speaker 2: 03:32 Yeah. Take the extra time if you need it. It gives you through October 15th, but a couple of things worth mentioning the extension of time is to file and not necessarily to pay. So if you owe or you think you owe, then you do want to at least file a return. If you have a requirement to file and pay something, uh, whatever that might be, whatever you can put toward the balance you owe, if you have a balance owed that way, you minimize your penalties because the penalties that can accrue are much greater for a return with a required file. If you required to file with a return with a balance due and you don't pay, that's much greater that penalty than filing a not full paying. So do consider what you can, if you're in that position where you have a balanced student on that said the majority of tax returns continue to be refund returns about seven out of 10. And so the only way to get those is to file that return and the best way, and to be redundant is to use technology choosy file direct deposit. Speaker 1: 04:26 And what do people have to do to get an extension? It is more confusing this year, Speaker 2: 04:30 Uh, pretty easy use tax software, or use the, uh, form 48 68. Take you just a minute to fill that form out and mail it in, or, uh, the software, uh, pretty easy as well, Speaker 1: 04:41 Struggling financially. They can't pay their tax bill right now. Uh, there is, uh, somewhat some wiggle room. There is there. Speaker 2: 04:48 The IRS generally wants to be a help and not a hinder. So there's flexibility. There there's payment plans. You can make an installment agreement online@irs.gov pretty easily for a small fee and set that up. If it's under $50,000 a set it up over time, up to 60 to 72 months, I believe off the top five to six years. But then also consider that if you can't full pay something, let the agency know. And, uh, in some way, shape or form is other avenues, but we certainly want to. Speaker 1: 05:15 Now we've seen a lot of stories, uh, in recent years, the IRS being underfunded understaffed, does the IRS have the manpower and computing power to process and enforce tax laws? This, Speaker 2: 05:25 Yeah, we're doing what we can, you know, certainly it's a little bit of a challenge considering resources. And in terms of people, you know, we're down Oh 75,000 IRS employees when that was about 110,000, maybe 10, 15, 20 years ago. So there's a lot of attrition there. Uh, but still we still send out millions of letters if you will, in terms of a correspondence to have folks check and make sure they're paying what they're supposed to pay and doing all those things. But, uh, assistance is limited. If you want to call the IRS because of the pandemic, we're slowly reopening, but the phone is extremely limited. Uh, nobody's gonna take task with the fact that if I say that it was limited before the pandemic due to resources, now it's really limited. So that's why it's irs.gov first. Uh, if you definitely, uh, wanna get the help you need there in terms of whatever you can, we have, uh, been, uh, moving things to virtual and doing things along those lines and all that. Speaker 2: 06:20 Information's on the website in terms of where you are and what you need in terms of, if you need to, uh, you have a case with the agency and that kind of thing, but certainly we're trying to use technology as best. We can. No question about it, especially now. And it's also a good time to check on your paycheck. Withholdings briefly walk us through that one. Uh, not a bad idea to take a look at your final Symantec finances for 2020 and make some adjustments. Now that way you have a chance to avoid some surprises when you file in 2021 for the 2020 tax year, right? And it's worth noting that we are filing here, the deadline for 2019 returns, but going forward, it's an excellent point that you make and not a bad idea to take a look at your financial picture with taxes, being part of it, going forward regarding the check on the withholding, uh, if they had to pay, how should they look to change their withholding? Speaker 2: 07:10 Yeah, lots of ways to do that. But from IRS point of view, we have a withholding estimator on irs.gov. And that was a expanded tool with a different algorithm put in there last year that really made it useful for a lot of folks. For example, who are in the gig economy, a working jobs, for example, that don't require you to have a withholding through a salary, perhaps like somebody who is a salaried employee, where you make quarterly estimated payments, or you should throughout the whole year, because taxes generally are pay as you go. So that estimate or an irs.gov is pretty good. You might take a look at some of the numbers and run them in software, just to see where you are meet with your financial professional. I've been speaking with Rafael Talena of the IRS in San Diego. Thanks very much. Thanks Mark. Thanks for having me and happy tax day. Speaker 3: 08:01 [inaudible].