What’s new with taxes?
Due to the recent COVID-19 outbreak, the IRS has made the decision to extend the 2019 tax filing deadline from April 15th 2020 to July 15th 2020. This move gives all taxpayers, regardless of their status or if they owe money, three months longer to file. Tax payments that were due on April 15th 2020 can also be deferred to July 15th 2020 without incurring interest or penalty.
Keep in mind that the extension applies to Federal tax filing/payments. When it comes to filing or paying your state taxes, they might have a different deadline. There is some good news for those who live in New York; state officials have said the deadline will be extended to match the Federal deadline of July 15th.
Who does this apply to?
This applies to any individuals, trusts, associations, companies, estates, or corporations that file within the U.S.
Should you wait to file?
The answer depends on if you expect a refund or not. If you are expecting one, the IRS is urging Americans to file. A tax refund could help during a time when many Americans are losing their jobs and money might be tight. If you are expecting to owe taxes, then delaying until July 15th might help free up extra cash until then. There is no penalty or interest to delay.
Despite the recent viral outbreak, refunds are still running on time. The IRS states they have about a 21-day turn around for filers that set up direct deposit.
One Additional Note: 2019 IRA contribution deadlines have been moved to July 15th as well.
If you have questions about your tax situation, please contact your tax preparer or a trusted financial advisor.
Financial Planning Associate