What the COVID-19 tax extension means to you

JH6A3757.jpg

On Friday, March 20, 2020, Trump administration officials announced a deadline extension for tax filing and payments originally due on April 15 of this year.

That deadline has been moved 90 days, and is now set for July 15, 2020.

Please note: We originally shared information regarding updates released on Tuesday, March 17. In that update, we noted that tax paperwork still needed to be filed by April 15. However, both filing and payment deadlines have now been moved to July 15.

Who does this impact?

This move impacts individual filers on up to $1 million owed, as well as corporate filers on up to $10 million owed. During this 90-day extension, no interest or penalties will be assigned to taxpayers.

It is important to note that this change has no impact on Americans who’ve already filed their taxes this year.

Quarterly tax payments

The first quarterly tax payment of 2020, originally due April 15, has also been extended to July 15, 2020. There is still uncertainty about whether the second quarterly tax deadline of 2020 (June 15) will be extended. Once that issue is resolved, we’ll communicate it with our clients.

Our recommendation

We echo administration officials encouraging those who are due a refund to file their taxes as soon as possible. For those who will owe, and who would prefer to utilize the new payment deadline as a reprieve, we will work with you accordingly. 

Further reading

If you’d like to read more about this matter, we recommend these articles: here and here

Remote office operations

We are working to do our part to stop the spread of COVID-19. For the safety of our team, we have decided to close our office and move to full remote work. We are still very reachable and working hard to meet all deadlines.

We have always tried to be a champion of leveraging technology and are thankful that we can continue serving you without much interruption at this time.

We will continue to monitor the situation and provide updates as they become available to us. If you have any questions or just need someone to talk to, please don’t hesitate to reach out to our team.