We hope all of you are managing to deal with the uncertainty of the COVID-19 virus outbreak and the impact of the efforts to combat its spread. We know that these efforts pose a serious challenge to many families and businesses, particularly small businesses. We wish everyone the very best as we all work through this. But most importantly, we hope that you and your family stay safe and healthy.
In the meantime, we wanted to keep you informed about some important news regarding tax deadlines. In addition, below is information on how it is easier than ever to work with our firm remotely throughout the tax preparation process.
Tax Payment Deadline Will Be Extended by 90 Days
Yesterday, March 17, 2020, Treasury Secretary Steven Mnuchin announced that individuals will be able to defer tax payments up to $1 million for 90 days pushing the payment deadline from April 15, 2020, to July 15, 2020. Normally, any outstanding tax payments not received by April 15th are subject to late payment penalties and interest. This announcement means that those charges will not apply as long as those payments are made by July 15, 2020.
It is unclear if this extension also applies to 2020 estimated quarterly payments, the first of which is due on April 15th, and the second of which is due on June 15th. We are still waiting for IRS guidance on this issue and other details, and we will keep you posted as more information becomes available.
[UPDATE] IRS guidance has confirmed that the postponement of the payment deadline also applies to Q1 estimated payments for 2020.
Filing Deadline Has Not Been Extended, But Normal 6 Month Extension Applies
As of now, there is no plan to extend the tax filing deadline beyond April 15th. However, the IRS already provides all taxpayers with an automatic six-month extension as long as you file an extension with the IRS.
If you are our client, by now we have filed that extension on your behalf. That means that all business returns are on extension until September 15, 2020, and all individuals are on extension until October 15, 2020. However, we will still be working and will plan on completing all returns in a timely matter.
Working With Us Remotely
While our offices are not closed, we are encouraging all of our clients to work with us remotely as much as possible. Fortunately, we have all the tools necessary to allow you to work with us from the comfort of your home using your phone, tablet and desktop computer. A large percentage of our clients already work with us in this manner. Click on the file below for more details on how you can work with us remotely.
We will continue to keep you posted. In the meantime, we wish everyone the best. Stay safe and healthy.
The Team at Schanel & Associates