IRS delays 2019 tax payments but not filings.

Andrew Silver
On March 20, 2020, the IRS announced a federal extension on tax filing, pushing the due date from April 15 to July 15 due to the impact of the coronavirus pandemic.

What is covered in this announcement?

  • Individual filers will have 90 days to pay income taxes due up to $1 million in taxes owed
  • Corporate filers will have 90 days to pay amounts due up to $10 million in taxes owed
  • During the deferral period, taxpayers won’t be subject to interest and penalties

 

What isn’t covered by the deferment?

  • Taxpayers still need to file their tax returns by April 15 unless they apply for an extension
  • State tax payments are subject to deadlines at the state level. This resource from AICPA provides individual state tax developments.

Stimulus Bill and 2019 Tax Return FAQs

Q: Why did the government make this move?
A: The delay is intended to keep $300 billion at play in the economy during this uncertain
time.

Q: What does this mean for me?
A: Americans expecting a refund are encouraged to file promptly to receive their refund as
soon as possible. Reasons to take advantage of the extended deadline include:

 

  • You will owe money and may need cash flow in the short-term to cover
    unanticipated expenses.
  • Your life has been significantly disrupted by the pandemic and you have not had time or mental bandwidth to prepare your return.
  • In light of recent circumstances, you now prefer to engage a tax professional.

Q: If I take advantage of the extension, will I pay a price?
A: No, you will not be subject to interest or penalty if you delay your federal filing through
July 15.

Q: I’ve heard stimulus checks may be coming. Do I need to get my return filed to receive one?
A: No, stimulus checks will be based on your 2018 tax return that was filed in 2019.

Q: Does the extension apply to federal and state taxes?
A: No, individual states are not mandated to extend filing deadlines. You can see the latest tax return relief efforts for your state in this resource from the AICPA.

Q: I usually file my own tax return. Do I need to hire a professional this year?
A: Some reasons you might want professional help this year:

  • If you anticipate a reduced income in 2020, a CPA can help you look forward to estimated tax payments.
  • You haven’t kept up on the latest changes to tax law; CPAs are acutely focused on the nuances of tax code and how to interpret changes to help clients.
  • Your time is better spent elsewhere, like caring for loved ones or making work adjustments.
Facebook
Twitter
LinkedIn
Email

ABOUT

SERVICES

CLIENT LINKS

Resources

©2022 Concordia Wealth Planning. All right reserved.

SAGE Tuition Rewards

With SAGE Tuition Rewards, students will earn guaranteed minimum scholarships at over 455 participating private colleges and universities across America! The scholarships can equal up to one full year’s tuition!

Each Tuition Rewards Point is equal to $1.00 in tuition discounts if the student attends a participating college or university. The accumulated points represent the minimum scholarship (grant or other institutional discount) that the student will receive.

35,000 Tuition Rewards Points represent a guaranteed minimum $35,000 scholarship at our member colleges. Your loved-one may receive more, but is guaranteed not to receive less!

Tuition Reward Points accrue like frequent flyer miles and are earned by based on investments implemented with Concordia Wealth Planning. What makes Tuition Rewards even more unique is that you don’t have to use the investment earning Reward Points to pay for college! How you pay for college is your choice.

 

* SAGE Tuition Rewards is available for clients who wish to have Concordia implement investment advice through the Investment Management add-on