Further Tax Change Updates…03/25/2020
As we mentioned in our blog post from last week, we are doing our best to keep you informed about any changes that may impact you, and not surprisingly, we do have additional information to share now.
On the evening of March 20, the IRS released Notice 2020-18 which provided some clarification on 2019 tax return filings and payments. While previously, only tax payments were deferred until July 15, now returns are not due until that date as well. Additionally, the liability threshold was removed, so there is no cap on the amount you can owe and still receive an extension of time to pay and file.
If, for any reason, you are concerned about making the new July 15 deadline, we encourage you to file an official extension which gives you until October 15 to officially file, just to be safe and avoid any penalties or fees.
There are still a few things that haven’t been completely clarified, or discussed, as well:
- There has not been any discussion of postponing any deadlines that land after April 15, so if your returns and payments are due on May 15, June 15, etc., assume you still have to file and pay by that date.
- It is unclear right now whether you now have until July 15 to make 2019 HSA and traditional or Roth IRA contributions. If you plan to make contributions and have them count toward 2019, we encourage you to make them by April 15 to be safe.
- If you make quarterly estimated tax payments, the June 15 deadline has not been extended. So at this writing, your 2nd quarter payment is now due before your 1st quarter payment, since it was moved from April 15 to July 15.
- If you have to file taxes in multiple states, keep in mind each state sets their own deadlines. Connecticut has issued its own extension to match what the federal government has set (July 15), but other states haven’t yet made that move. We are happy to help you figure out how and when to file on a state-by-state basis, if needed.
If possible, we encourage you to file your taxes by April 15, particularly if you are expecting a refund. We are happy to work with you on an individual basis to ensure you are making the smartest decisions for your individual situation, so feel free to call or email us with your questions or concerns. While we are not meeting with clients in person at this point, we are happy to set up a call or video conference with you.
And most importantly, stay safe and remain healthy!