“5 Ways Tax Pros Want IRS To Respond To COVID-19”
As much of the nation shifts to working remotely in response to the new coronavirus, also known as COVID-19, many tax attorneys hope the IRS will take decisive action to ease tax filing and payment burdens on their clients.
Typically, tax payments are still due April 15, so the government would need to decide whether to also extend the payment deadline, Abbey B. Garber, a tax partner at Thompson & Knight LLP who worked in the IRS Office of Chief Counsel for more than 30 years, told Law360. That way, people don’t accidentally owe penalties and interest because they incorrectly assumed the tax filing extension past April 15 meant they were exempt from paying taxes then too, he said.
“The IRS has broad authority to extend filing and payment of taxes,” he said. “We typically see the six-month extension that taxpayers typically request and the kicker there is that extension is for filing and not for paying. So people can get caught up in that [because] I don’t think the average taxpayer distinguishes the filing deadline and the payment deadline.”