The 2020 tax season is underway, but millions of Americans have yet to start preparing their tax returns.

Tax Cheat Sheet – Tax Deductions For Small Business

Deductions and Tax Credits Tax Cheat Sheet

In response to the COVID-19 pandemic, Treasury Secretary Steven Mnuchin offered taxpayers a 90-day reprieve to pay their income taxes. Taxpayers will now have until July 15th to pay their 2019 income taxes (up to $1 million). During this time, taxpayers will not incur interest on unpaid taxes or be subject to tax filing penalties. According to Wealth Management, “this reprieve amount would also likely apply to small businesses and pass-through entities. Corporate filers, on the other hand, would get the same length of time to pay amounts due on up to $10 million in taxes owed.” 

Historically, taxpayers procrastinate on their taxes, but it is prudent to prepare tax returns well in advance. In 2018, it was estimated that over 14 million people waited until the last day to file their returns, causing the IRS website and filing system to crash in the early morning hours. The situation was not resolved until early evening, and although the IRS extended the filing deadline, panic ensued for many taxpayers who had waited until the last day to file.

Despite the 3-month extension, taxpayers may again put off paying and filing their taxes—especially as COVID-19 continues to interrupt daily life and cause financial strain.