COVID-19 and Your Taxes: What You Need to Know

April 28, 2020 0 Comments

The COVID-19 pandemic has changed the way Americans conduct business. It has altered all aspects of daily life.

From shops and small businesses forced to temporarily shutter their doors, to the new importance of food suppliers and delivery services to continue to conduct operations, our economy and our day-to-day routines have certainly changed.

And if you own or manage a business that requires fuel to survive, then chances are you are in high demand.

Businesses that perform the following, and use fuel in all forms are typically considered “essential services” during this unprecedented era.

  • Operate refrigerated trucks
  • Provide gardening or landscaping supplies
  • Construct new buildings and homes

Their ability to function is more critical than ever. At the same time, Americans are struggling financially.

And several aspects of everyday life have been altered or have been put on hold, and this includes the 2020 tax season.

So if you have been busy working or just trying to staying afloat, and haven’t had the time to examine how the tax season has changed during the COVID-19 pandemic, then take a moment to review what you need to know about your 2020 taxes, and beyond.

You Have Until July 15 to File

A 90-day tax payment extension for your federal taxes was initially granted in early March. But days later, the federal government also extended the date to file your taxes to July 15.

This means all taxpayers – including businesses – effectively have until July 15 to file their 2020 taxes without penalty.

U.S. Treasury Secretary Steve Mnuchin noted this leeway in the original announcement of the extension. He stated,

“All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”

Your State Tax Deadline Is Likely Extended

All 50 states in the country have extended their tax deadline as well. And most of the states (or approximately 43 out of 50) have extended it to match the new federal 2020 tax due date of July 15, 2020.

With that being said, a handful of states may have different deadlines, with a few states having new due dates in June, and Mississippi setting a new due date of May 15.

Simply put, double-check to see when your state taxes are due as well before you file. There is a small chance your state taxes may be due before the federal July 15 due date.

You Can Still Request an Extension

If you are an essential worker or business, then chances are you have not been able to slow down in recent weeks. It’s likely this hectic new schedule will continue in the months to come.

The good news is if you require an extension past the July 15 federal tax due date, you can do so without penalty as well.

Simply fill out the appropriate form before the July deadline to receive a lengthier extension to October 15, 2020.

The Timeliness of Your Refund May Not Be Affected

Many taxpayers who expect a refund may be concerned the COVID-19 pandemic has slowed down the process. But, this may not be the case.

Per a recent statement from the Internal Revenue Service (IRS), the government is still continuing with regular operations whenever possible. And statement includes processing 2020 tax returns.

IRS Commissioner Chuck Rettig confirmed processing refunds and tax returns are a priority in a recent press release. He stated,

“Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds.”

You Can Still Receive In-Depth Tax Assistance, Without an In-Person Visit

Many business owners spend their time in their accountant or tax preparer’s office in the days and weeks leading up to the tax deadline to:

  • Share receipts
  • Answer questions
  • Ensure their taxes are prepared adequately via an in-person visit

But you don’t have to meet in person to ensure you have top-notch service for your tax returns necessarily.

We Provide Personal and Professional Service

At TIP, we provide personal and professional service when it comes to fuel tax recovery that does not require a face-to-face consultation.

We’ll simply:

  • Ask you a few questions
  • Request some info if you have it available such as:
    • A list of non-highway equipment
    • In-service dates
    • Hours of operation
    • Fuel invoices
    • Form number used for annual federal tax filings
  • Tackle the rest of the hard work

Remember, if you don’t have all your fuel-related documentation handy, we can often retrieve this information for you and proceed accordingly. Simply put, all you have to do is reach out to us, and we can take care of the rest.

It’s More Important Than Ever to Explore Your Options for Fuel Excise Tax Recovery

Granted, oil prices are at an all-time low as the nation as a whole stays at home but remember there is ample opportunity to recover your fuel taxes from previous years when your fuel costs were significantly higher.

The first federal filing for fuel tax recovery can go back three years from the date of filing, while the state filing can range between three months to three years, based on the state that the filing is for.

As such, considering that we’re all finding new ways to cut corners and ease our financial burdens, there is no better time to explore your options for fuel tax recovery and to see if you have left money on the table.

We Will Take Care of the Rest

Remember, you can easily contact TIP with a little necessary information, and we will take care of the rest.

There is no charge unless we recover funds for you and your business, so you can continue to conduct your operations without worrying about excess costs to explore your fuel tax recovery options.

With a federal extension to July 15 to file your taxes, there’s no time like the present to get started on a smart and often-overlooked path to putting money back into your pocket.

Contact us today! We’ll work together to ensure you leave nothing behind, despite the challenges the COVID-19 pandemic may bring.

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COVID-19 and Your Taxes: What You Need to Know
COVID-19 has changed the way we do business, and this includes filing your 2020 taxes. Read on to learn what you need to know about your tax return.