In this changing environment, The IRS has created an insightful Q&A page that has been designed as a helpful tool for taxpayers and tax professionals. Check out the link below for answers to frequently asked questions related to the filing and payment deadlines
IRS Provides 90-Day Federal Income Tax Payment Extension
The IRS has announced that the due date for making federal income tax payments has been postponed from 4/15/20 to 7/15/20. For consolidated groups and stand-alone C corporations, up to $10 million of tax payments can be deferred. For all other taxpayers, up to $1 million can be deferred, regardless of filing status. The relief only applies to federal income tax payments (including self-employment tax payments) due on 4/15/20 for the 2019 tax year, and federal estimated income tax payments due on 4/15/20 for the 2020 tax year. Payments made within the 90-day deferral period will automatically be exempt from interest and penalties. The IRS has not provided an extension for the payment or deposit of any other type of federal tax, or for the filing of any tax return or information return. Notice 2020-17 .
IRS Provides 90-Day Extensions for Federal Tax Filing
The IRS has announced that the due date for filing federal income tax returns has been automatically extended from 4/15/20 to 7/15/20. Taxpayers also can defer federal income tax payments due on 4/15/20 to 7/15/20 without penalties and interest regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers, as well as those who pay self-employment tax. Taxpayers do not need to file additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individuals who need additional time to file beyond the 7/15/20 deadline can request an extension by filing Form 4868. Businesses that need additional time must file Form 7004 . The IRS urges taxpayers who are due a refund to file as soon as possible. Notice 2020-17, which only provided a 90-day tax payment extension, has been superseded. Notice 2020-18 and News Release IR 2020-58.
Below is a snapshot of significant changes affecting your income tax filings:
- On March 20th, the US Treasury announced that the tax filing deadline has been moved this year from April 15th to July 15th. Along with this change, an extension request is not required provided that income tax returns are filed by this date. Should additional time be needed, however, an extension request would continue to be available to allow for timely filing by October 15th.
- Payment of balances due on 2019 income taxes are also allowed an extension until July 15th. No further steps are necessary to receive this extension of time to pay. However, there is no extension of time to pay beyond July 15th. Payments remitted after this date for 2019 income taxes will be considered late and penalties and interest will be assessed.
- The US Treasury has also announced that first quarter estimated tax payments, which are normally due April 15th, are also extended until July 15th. No further steps are necessary to receive this extension of time to pay.
- The second quarter estimated tax payment is generally due June 15th. No extension has been granted for this payment.
- If your 2019 income tax returns have been previously prepared, and if automatic payment arrangements were established to remit payment on April 15th, it is worth noting that the Internal Revenue Service will not modify this payment date on your behalf. If you require changes to be made, the only option available is to cancel the payment and choose an alternate payment method. To do so, you must call IRS e-file Payment Services at (888)353-4537 no later than 11:59 pm E.T. two business days prior to the scheduled payment date. This will apply to both 2019 income tax payments as well as to 2020 estimated tax payments. Should you make a change and need a payment voucher to remit the payment, please contact our offices and we can print one for you to utilize.
- Income tax returns with refunds will continue to be issued payment on the pre-arranged payment cycle established by the Internal Revenue Service. We expect no delays to those refunds at this time.
- Wisconsin has also announced that income tax returns and the corresponding payments will now be due on July 15th. Like the Federal change, there is no requirement to file an extension request in order to receive the additional time to file and pay.
- Illinois income tax returns have not been extended as of today. We anticipate further changes will be forthcoming with respect to the tax filing deadlines and will provide updates as information becomes available. For the time being, April 15th remains the due date for those individual income tax returns.
- Similarly, Illinois has not extended payment deadlines for 2019 income taxes and 2020 estimated tax payments.
- We can apprise you of other state income tax filing requirements on an individual basis should you have filing requirements in any other states.
Family First Coronavirus Response Act Information from the IRS
Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related
WASHINGTON – Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020. The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus For additional information, please click on the link below:
Coronavirus (COVID-19): Small Business Guidance & Loan Resources
Health and government officials are working together to maintain the safety, security, and health of the American people. Small businesses are encouraged to do their part to keep their employees, customers, and themselves healthy. Please click on the link below to access additional information from the SBA.
Business Guidance & Loan Resources :
Maximum Credit Per Year:
Last Minute Tax Reminder > Contributing to an IRA
Last Minute Tax Reminder > Contributing to an HSA
An IP PIN is a six-digit number assigned by the IRS to eligible taxpayers. This pin helps prevent the misuse of taxpayers’ SSNs on fraudulent federal income tax returns. Recently, as a result of the Taxpayer First Act, the IRS has opened the IP PIN system to a variety of taxpayers. In addition to taxpayers whose SSNs the IRS has determined are compromised for tax-filing purposes, IP PINs are now available to those who filed their federal tax return last year as a resident of Florida, Georgia, the District of Columbia, Michigan, California, Maryland, Nevada, Delaware, Illinois, and Rhode Island or received an IRS letter inviting them to “opt-in” to get an IP PIN. Requesting an IP PIN is strictly voluntary. If you choose not to participate in the program, you can file your return as you normally would. If you are assigned or if you request an IP PIN, you must use it – along with your SSN – to confirm your identity on any tax returns filed electronically during the calendar year.
If you have any questions, please contact our office to discuss the Pros and Cons.
IRS Link: https://www.irs.gov/identity-theft-fraud-scams/frequently-asked-questions-about-the-identity-protection-personal-identification-number-ip-pin#q2