Hi Anne-Marie, Your HomeActions News for Tuesday, April 07, 2020
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Anne-Marie Tustin
Anne Marie Tustin
Broker Associate
Direct: (609) 575-8801
Office: 609.737.1500
atustin@weidel.com
Weidel Real Estate
Pennington NJ 08534
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April 15 and June 15 Filing Dates Pushed Back to July 15

 

Because of the ongoing financial turmoil, the IRS is cutting some slack to a great many individuals and businesses. They now have until July 15 to pay any federal income taxes they owe. The delay is available to individuals who owe $1 million or less and corporations that owe $10 million or less. The IRS will not charge interest or penalties for this delay.

This includes first and second quarter estimated tax payments normally due April 15 and June 15. In short, any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty. 

Previously the IRS had only postponed payment, not filing, but on March 20 the Treasury announced filing would be postponed as well.

This could be an enormous boon to those who owe money. It's never easy finding the cash to write the government a check, but it's especially difficult now, as the coronavirus has curtailed so many activities: Many businesses and employees are seeing a drastic drop in income, and decimated stock portfolios may force some investors to sell at a loss to cover tax bills. Hopefully, in three months, taxpayers will be in a better position to pay.

For those who have already filed and are expecting a refund, nothing has changed; this does not mean they will have to wait any additional time for their refunds. Those expecting a refund have no reason to take advantage of the delay--it's to their advantage to file as soon as possible.

This delays in filing and payment only affect federal returns, not state. However, some states are offering similar relief. The American Institute of CPAs has created a list of what each state is doing. Note that this is a fast-moving story, so even if your state has nothing planned as of today, that may change by tomorrow.

Getting Into Details

This tax postponement plan began as an oral promise, but the IRS has started to issue more details and guidance in its e-newsletter:

  • The individual taxpayer relief includes all individual returns, includes self-employed individuals, and all entities other than C-corporations, such as trusts or estates.
  • The IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
  • For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million.
  • This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.
  • The relief only applies to federal income tax, not to any other kind of federal tax.

Since this is a very new program, we will be closely monitoring the situation for additional official guidance.

 

 
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose. If your home is currently listed with another broker please disregard this email. It is not our intention to solicit the listings of other brokers.
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