As you may have heard, there are significant changes to tax filing and payment deadlines.
The Internal Revenue Service (IRS) recently issued guidance allowing all taxpayers (this includes individuals, estates, trusts and corporations) to defer payment of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. This delay in required payments applies to both 2019 income tax payments due April 15, 2020, as well as first quarter 2020 income tax payments normally due the same day. In addition, the guidance extends the filing deadline for any income tax returns due April 15, 2020 until July 15, 2020. To benefit from these extensions, there are no required forms or filings, the deadlines are automatically extended without the need for any taxpayer action.
Also, the IRS created a Coronavirus Tax Relief webpage to provide regular updates to help taxpayers, businesses and others impacted by the coronavirus.
Finally, in response to the national emergency and to protect IRS workers, communities and partners, the IRS has temporarily closed all Taxpayer Assistance Centers and will discontinue face-to-face service throughout the country until further notice.
Many states are falling in step with the IRS changes and also extending the filing and payment deadlines. Governor Kelly signed Executive Order #20-13, extending Kansas tax filing and payment deadlines to July 15, 2020, and waiving any interest and penalties for returns and payments made on or before July 15, 2020. The order also extends the filing date for homestead and property tax relief refund claims to October 15, 2020. However, this order does not provide any relief to the estimated tax payments due April 15, 2020.
The AICPA continues to compile a list of states providing relief to this year’s tax filings. Click here to access the AICPA State Tax Filing Guidance for Coronavirus Pandemic.
We’re here to help
We know this is a quickly evolving situation with long-term implications. We are here to help you not only with your tax filings but also to help you manage cash flow, build financial projections, assist with negotiating business loans and other services. While the tax deadline has been moved to July 15, we continue to meet with clients (virtually) and prepare returns. If you are a Mize tax client, please continue to submit tax information to us using Secure Mail or USPS.
Please contact your Mize CPAs professional if you have concerns or questions.
*This post was updated on 3/24/20.
This content was created during a snapshot in time and should be relied upon as such. Legislation and guidance continue to change as we progress through the current fluid environment and the information may not be applicable at a later date. All content and materials are for general information purposes only. If you have questions regarding your specific situation, please contact us.