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COVID-19 impacts on tax season

Lawmakers work to push back the deadline giving Americans more time to file.

GRINNELL, Iowa — Some major events have been canceled or postponed due to the virus.

One item still on everyone's calendar is taxes. 

We are now inside of one month to file federal income taxes.

Normally the advice is for people to file taxes early to avoid potential issues with fraud.

This year, it's to try and get in front of the uncertainty of the coronavirus and the potential impact on tax season.    

"It's going to be interesting to see how this plays out. We're still functioning day to day, doing a lot of cleaning, hand sanitizing, washing hands and all that good stuff. We're still meeting face to face with clients who want that option," Tim Baker said. 

Baker with Baker Starret CPA has already received calls from clients canceling appointments.

This past week, Representatives Josh Gottheimer (D-N.J.) and Paul Mitchell (R-Mich.) are calling on the IRS to push back its tax filing deadline in response to the coronavirus pandemic.

In a letter sent to IRS Commissioner Charles Rettig on Friday, the lawmakers argued that an additional 90 days should be provided to help mitigate the impact the virus is having on local communities

"Always remember you can extend your returns as long as you pay what you owe without penalties or interest. What they're talking about now is a free extension without penalties or interest on what you owe. As we sit here the IRS hasn't given us that authority yet. We expect that this week," Baker said. 

RELATED: Gov. Reynolds: 23 positive coronavirus cases now in Iowa; schools won't need to make up lost time

Making this a little more fluid is the fact lawmakers in the state of Iowa are not in session due to the coronavirus pandemic. 

Any decision on extending that date will have to come from an emergency meeting. 

That could happen, or it may not happen.

But Baker said that would depend on the IRS first. 

His best advice is to go with your regular filing deadline, that being April 15 for federal and April 30 for state, and if you need an extension talk with your tax professional and they can do that for you. 

RELATED: Screening tents set up outside Iowa Capitol to combat COVID-19

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