Our office this week resumes in full the preparation and filing of Income Tax Returns for clients. I have been advising clients about the new tax deadlines and how these new dates can help us with the filing of taxes for the Year 2019 and tax planning for the year 2020.
These are the most frequent questions I received this week:
Do I need to file an extension to file past April 15?
No, you do not need to take any action. The new July 15th extension applies to all taxpayers automatically.
Who qualifies for this extended deadline?
This extension applies to all taxpayers, including individuals, trust and estates, corporations, partnerships, and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers who owe money can defer federal tax payments, interest-free and penalty-free until July 15th.
Does this extension apply to 2020 quarterly estimated tax payments?
Yes. The tax year 2020 estimated tax payments previously due on April 15, 2020, and June 15, 2020, are postponed to July 15, 2020.
Do I have more time to contribute to my Individual Retirement Account (IRA)?
Yes. You have until July 15 to make a 2019 contribution to your IRA.
What about If I need more time to file and pay my taxes past July 15?
If you need additional time beyond July 15 to file, you will need to file an extension. An extension will give you until October 15, 2020, to file. However, you will need to pay any taxes owed by July 15 or be subject to penalties and interest.
What happens if I already filed my taxes?
Your taxes will not be affected in any way. The IRS is processing tax payments and refunds as normal. The IRS typically issues nine out of 10 tax refunds within 21 days or less from acceptance with e-file and direct deposit.
We are planning to reach you within the next weeks to discuss your personal tax situation to file and pay your taxes before the new tax deadline.
If you have any questions regarding the new tax deadlines, please call us.
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