Q & A 2020 Tax Deadlines
Has the IRS extended the April 15, 2020 deadline for tax filings? Yes, the IRS has extended the deadline for all tax filings to July 15, 2020
Has the IRS extended the tax payment deadlines? Yes, the IRS has extended the 2019 tax payment deadline to July 15, 2020 for all payment amounts for individuals, estates, trusts, corporations and other non-corporate tax filers, as well as those who pay self-employment tax.
Will I owe late filing penalties or interest if I don’t file my return until July 15, 2020? No, the extension now applies to filing returns
Do I have until July 15, 2020 to pay my 2020 1st Quarter estimated tax payment without late payment penalties or interest? Yes, the extension is for all amounts of taxes owed. If you’d like to talk strategy about the best way to take advantage of these payment deadline extensions, please schedule a call with Pam using this quick link.
I did not make estimated tax payments for 2019, will I still owe underestimated tax penalties? Yes. These have not been waived so far.
Do I have to make Q2 estimated tax payments by the June 15, 2020 deadline? As of right now, yes. This may result in Q2 estimated payments being due before Q1 estimated payments. We will monitor the IRS for guidance and notify you with updates.
I am self-employed. Are self-employed taxes covered under the “income” taxes for the purposes of the July 15 payment extension? Yes
I have employees. Are payroll taxes covered under the “income” taxes for the purposes of the July 15 payment extension? We will address this in full in a separate email.
I file tax returns in one or more states. How is my state addressing April 15th filings and payments? Every state is different. Some have already announced filing and payment delays. Others may or may not issue timely guidance. If you are a client, we will determine together how to approach outstanding state filings and payments. Note that most states either automatically extend tax returns unfiled by April 15th or accept a federal extension as a state extension. To be clear, this applies to filings and not payments.
I’m expecting a refund with my 2019 tax return. When should I file? As soon as you have all of your information barring some other reason for extending. The extended payment deadline is irrelevant to you. The fastest way to get your refund is through direct deposit, which the IRS is still processing in about 21 days after filing.
I’m confused, scared, frustrated and you know a lot about my financial situation, can we talk? You bet! Use this link to set up a call with Pam and let’s talk it out.
Where can I go for updates about the impacts on taxes? Sound Tax is here for you and staying on top of this unprecedented and ever-evolving situation. We will try to send out updates on a consistent basis to keep you informed. You can also go directly to the IRS and monitor their updates page.
While we see a lot of communities coming together and providing support for one another, It is important to keep in mind that times like these are rife for scammers and misinformation. Remember that the IRS will never call you and threaten legal or penal actions, they will never demand payment over the phone and they will never ask you to reveal personal information such as social security numbers, birth dates and bank account information. If you receive any such calls or emails, please immediately report them to the IRS here. Be careful trusting what you read online or hear from politicians. Any information regarding federal and state policies or taxes that doesn’t come directly from Sound Tax, the IRS or state taxing/government authorities should be treated with appropriate skepticism until confirmed by one of us.