As of March 25, 2020:
Tax Filing and Payment Deadline Update:
As we already mentioned in our previous post, tax filers now have the option to not only delay payment for taxes due until July 15, 2020, they can now also delay filing their taxes until July 15, 2020. So, this is a big sigh of relief for everyone who is a procrastinator in terms of taxes: you can now procrastinate a little while longer.
If, however, you anticipate a refund upon filing your taxes for 2019, the IRS is encouraging filers to get busy and get their tax returns filed no later than April 15th. There is no reason to delay if you are getting money back.
Estimated Quarterly Tax Payments:
In addition to the provision allowing filers to delay until July 15th, if you make estimated tax payments, you can delay the first quarter payment that is normally due on April 15th until July 15th, 2020. However, and this is important, you will still need to make the second Quarterly Payment by June 15th.
Suggestion for Smoothing Out Your Cash Flow:
- Make your estimated quarterly payment by April 15th, as you would normally do.
- Make your estimated quarterly payment on June 15th . Again, this payment is neither optional nor flexible.
- Make your tax payment on July 15th.
This suggestion will be dependent upon how much each of these payments are, and you could also switch the suggested tax payment with the April quarterly payment. Or, simply defer both the April quarterly and tax payments until July 15th; it all depends upon your current and projected cash flow availability. We always think it is nice to just have options, so choose the one(s) that work best for you.
Update on IRA Contributions, etc.: May Be Delayed Until July 15, 2020:
- IRA and Roth IRA Contributions related to 2019 taxes
- Health Savings Account contributions for 2019
- Employers with tax filing deadline of April 15th can delay their contributions for 2019 to employee retirement accounts until July 15th.
We are still awaiting the final passage and release of the latest Congressional Corona Virus Relief Bill, but for the moment, are encouraging those whose jobs have been shuttered to go ahead and file for unemployment as soon as possible. We will share more as the situation becomes clearer, but in the meantime, be smart and stay safe and sane.
