Amid the current pandemic, the federal government is looking for opportunities to ease the financial strain of taxpayers. The Treasury Secretary, Steve Mnuchin, recently announced that the IRS would give filers an additional 90 days to file 2019 income tax returns and to pay any tax liability without penalties or interest charges. Not only will this apply to individuals, but it will also impact pass-through entities and small businesses. Corporate filers are being given the same extension. At Fricke & Associates, P.C., we want to help you understand this change and be prepared to take advantage for the extended date of July 15th.
Most Important Things to Remember:
- If You are Expecting a Refund, You Should Still File by April 15th—Mnuchin still encouraged all taxpayers able to meet the April 15th deadline to do so because they may receive a tax refund. There will be no penalties or fees for waiting the 90 days to pay any taxes owed. If you are unsure whether you financially can make the regular payment deadline, accepting the extension will surely be a benefit.
- The Extension Applies to Federal Taxes Only—Individual states have the option to offer similar extensions and delays, but it is determined by the state. Make sure to check the guidelines for the state carefully. As of the announcement date, the state of Georgia was inclined to offer an extension similar to the federal government, but it is not official at this time. If you are struggling to locate the most up-to-date information, we will be happy to help you find out more.
- You Will Face No Penalties for Accepting the 90 Day Extension—Although you will delay getting a refund if you are due one, there is no other downside. If you either are not properly prepared for April 15th, you do not have the finances to pay, or you simply prefer the extra time, go ahead and accept the additional time to file your income tax returns or to pay any tax liability.
- The Extension Applies to Individuals and Corporations—The extension is relevant for individuals with under 1 million dollars in taxes owed and companies with under 10 million dollars in taxes owed.
In this time of uncertainty, feeling anxious about your future can come so naturally. Try to stay calm, focus on your health and wellness, and remain hopeful for improvement in the days to come. At Fricke & Associates, P.C., business is as usual. We are open and available to prepare your tax returns. You may drop off your information at our office or for your convenience use our client portal to electronically transmit your documents.