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What You Should Know About The New Tax Deadline
Rebecca Casarez, CPA
With the COVID-19 pandemic and the shelter in place orders, many states are executing, it is becoming harder and harder to pay monthly fixed expenses like rent, utilities, and mortgages. For many people, the thought of having to also pay their 2019 tax bill along with their 2020 estimated tax payments is too much to handle.
As you are likely aware, the IRS has extended many of the tax returns and payment deadlines for the 2019 and 2020 tax years. So while you may know they are not due now, adding the new date on your calendar is a must. Keep reading to find out the details of the tax extension and how they apply to you.
These are automatic extensions of the deadlines and do not require additional paperwork to be filed by the taxpayer. Very important since traditionally, an extension does require you to notify the IRS.
Individual Tax Returns
In line with Governor Newsom’s March 12 Executive Order, the deadlines may be extended further if the IRS grants a longer relief period. However, that will not be determined for a while so the best course of action is to prepare as if the current deadlines are going to be the latest for the 2019 tax year.
Below is a comprehensive list of the new tax deadlines implemented by the IRS.
2019 Income tax filings for individuals,
trust, and corporations that use a calendar year……………..………..July 15, 2020
2019 Income tax payments that were due on 4/15/2020……………….July 15, 2020
Estimated tax payments for Q1 (Jan through March) of 2020………………July 15, 2020
*If you still need more time to file beyond July 15, 2020, you can still request a filing extension by filing Form 4868 through your tax professional.
Business Tax Returns
Additionally, many states have implemented relief that mirrors the IRS extensions.
Likewise, these deadlines may be extended further if the IRS grants a longer relief period. Below is a comprehensive list of the new tax deadlines implemented by the California State Franchise Tax Board.
2019 Personal, Partnership, LLC, Estate, Trust,
Exempt Organization and Corporate Tax Returns……… …………….July 15, 2020
LLC Annual Tax Payment for 2020…………………… …………….…..July 15, 2020
LLC Est. Annual Fee Payment for 2020……………………………..….July 15, 2020
First Quarter (Jan thru March) Personal Estimated Tax Payment……July 15, 2020
If your business or entity uses a tax year other than the calendar year (Jan 2019 thru December 2019) your deadline may differ. If you would like to talk about how these changes can affect your particular business, consider scheduling a consultation with us.
Delaware Due Dates
Many California small businesses are registered in Delaware as well, please see the filing extensions and payments deadlines for Delaware below:
Personal Income Tax Return……………………………..July 15th 2020
Estimated Personal Tax Payments Due 4/15/2020……….July 15th 2020
Corporate Tentative Returns due 4/15/2020……………….July 15th 2020
Please follow our page for any updates on tax extensions, deadlines, and bill payments. If you have any further questions about how this affects you or your business please contact ProAdvisor CPA or your tax professional.
Disclaimer:
This publication is designed to provide information on federal tax and accounting laws and/or regulations. It is presented with the understanding that the author is not rendering legal or accounting services.
This text is not intended to address every situation that arises or provide specific, strategic tax and/or accounting planning advice. This text should not be used solely to answer tax and/or accounting questions and you should consult additional sources of information, as needed, to determine the solution to tax and/or accounting questions.
This text has been prepared with due diligence. However, the possibility of mechanical or human error does exist and the author accepts no responsibility or liability regarding this material and its use. This text is not intended or written by the practitioner to be used and cannot be used by a taxpayer or tax return preparer, for the purpose of avoiding penalties that may be imposed.
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