If you’ve been listening to the news, you may have heard that the federal government has extended the due dates related to certain filing and tax payment due requirements for the 2019 tax year. I wanted to take a few moments to communicate the specifics of those changes.
On the Federal side, last week, the Treasury Department and the IRS announced some changes related to federal income taxes. The tax filing date has been automatically extended from April 15th, 2020 to July 15th, 2020. In addition, taxpayers can also defer federal income taxes due from April 15th, 2020 to July 15th, 2020, without any additional penalties and interest, regardless of the amount owed. This applies to all taxpayers including individuals, Corporations, and trusts and estates.
Both extensions are automatic. Taxpayers to not need to file any additional forms or communicate to the IRS to qualify. Taxpayers who need additional time to file beyond the July 15th deadline will need to file an extension.
There is also an extension of time to make payment for the 1st Quarter Estimated Tax payments due on April 15th, 2020 for those taxpayers required to make estimated tax payments. At this time, the first quarter has been extended to July 15th, 2020. However, the second quarter estimated tax payment due on June 15th, 2020, as of today, continues to be due on June 15th, 2020. This may or may not changes as we get closer to the due date so continue to watch news on this.
If you expect a refund, the IRS is urging taxpayers to file their return as soon as possible. At this time, most tax refunds are still being issued within 21 days, and while no changes in that timeline are expected, the IRS is urging taxpayers to file as soon as possible. As always, the quickest way to get a refund is to file electronically with direct deposit.
In addition to you Federal Income Tax requirements, you should follow your state as well to learn about any changes in your state tax compliance obligations. For example, in my home state of Texas, while we have no income taxes, businesses have compliance requirements related to Payroll, Sales and annual Franchise tax requirements. At this time in Texas, there have been no changes in filing requirements, although the states Comptroller’s Office has communicated their willingness to work with taxpayer’s having problems meeting their obligations with short-term loans.
Tomorrow, we’ll discuss IRS changes in their Compliance/Collection area so stay tuned.
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