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- [Narrator] Taxes are
different this year.
Take a look at this chart,
which shows individual income
taxes collected by the IRS.
There's a dramatic spike
every year in April,
but not so in 2020.
That's because the deadline to
file individual income taxes
was delayed due to the coronavirus.
It's now July 15th.
This is just one of several changes
that could make this year's
filing even trickier than usual.
Here's what you need to know
going into this unprecedented tax season.
The first changes this
year are in the deadlines,
and not just the ones for
individual income taxes.
- So there's dozens and dozens
of deadlines in the tax code
for estimated tax payments,
for estate tax payments,
for payroll deposits,
all sorts of things that
create this constant churn of money
going into the government.
So what the government has
done is basically delay
a lot of those things.
Pushed them back to July 15th.
- [Narrator] This year, you
can still seek an extension
through October 15th,
but you still have to pay
by the July 15th deadline.
Penalties and interest begin
to accrue on July 16th,
unless the date is extended again.
Now, this deadline is
for taxes on 2019 income,
but for many, there are
changes to 2020 income too.
If you're one of the millions of people
who received additional money
from the government this spring,
know that some of it will be
taxed, and some of it won't.
Around 159-million Americans
received one-time payments
between April and June of 2020
according to the Treasury Department.
These were deposits of up
to $1200 for individuals,
plus an additional $500 for each child.
- It's not taxable
income, and you shouldn't
owe anything on top of it.
Think about it like an additional $1200
added to the refund
that you were going to get in early 2021,
and they're just giving it to you now.
- [Narrator] But, if
you're one of the tens
of millions of people
who received unemployment
benefits from the government,
you'll likely have to pay
tax on that money in 2021.
If you're in this group, you
should receive a 1099-G form
early next year.
That will show the amount
that you were paid in 2020,
and any withheld taxes.
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The IRS also says to expect delays
if you're one of the
millions looking for help
from the agency this tax season.
Many IRS offices closed down this spring,
forcing staff to work remotely.
- They were in the middle of
the busiest season of the year,
and Congress basically
said, "Okay, pause that.
"Switch and do this other thing now,
"and get all this money out.
"Oh and by the way,
"do that as much as possible
while not being in the office."
- [Narrator] The result?
Big delays in customer
service, and even refunds.
Since March, the agency received a backlog
of some 10-million pieces of mail,
and now has to play catch-up.
It's warning that there
will be significant
wait times for phone calls.
The IRS started bringing some
employees back in late April,
but as of early May, 30%
of workers were still out.
- It just means that every interaction
you would think to have with them,
is going to take longer
than it normally would.
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- [Narrator] But, the IRS
is also cutting Americans some slack.
The agency paused some compliance measures
to provide temporary relief
to those falling behind.
- The IRS has done what it's called
a people-first initiative,
which postpones a lot of
enforcement actions through,
at least through July 15th for now.
The idea really is just
to relieve any pressure,
at least temporarily, from noncompliance.
It doesn't make those debts go away,
by any stretch of the imagination.
But, all of the enforcement
that the IRS would do,
it gets paused.
- [Narrator] For example,
taxpayers on a pre-existing
installment plan
have the option to suspend payments
between April 1st and July 15th.
The IRS is also temporarily holding back
on liens, and other enforcement steps
related to unpaid tax liabilities.
And, if you need a new passport,
the IRS won't send the names of taxpayers
dubbed "seriously delinquent"
to the State Department
during this grace period.
In normal times, the State Department
can delay your application, or renewal,
if you're way behind on your taxes.
The coronavirus reshaped American
life virtually overnight,
and taxes were no exception.
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