FAQ’s Surrounding the Coronavirus Related Tax Changes

 

FAQ’s Surrounding the Coronavirus Related Tax Changes

 

Here is a blog post of some frequently asked questions surrounding all of the Coronavirus Related Tax Changes. This update is as of 03/30/2020. Things are changing rapidly and some guidance has not yet been released from the IRS. These answers are based on the current information available. 

 

Federal Tax Returns Updated Due Dates 

Tax Returns that generally would have been due on 04/15/2020 are now due on 07/15/2020.

This relief applies to:

Individuals filing Form 1040 

Trust and Estates filing Form 1041 

Partnerships filing Form 1065 

Corporations filing Form 1120 

 

What about interest and penalties? 

Interest and penalties will not accrue till after the 07/15/2020 due date. You will not be subject to penalties and interest between 04/15/2020- 07/15/2020.

 

What if I still need to file an extension after 07/15/2020?

If you need an extension past the 07/15/2020 due date, you can still file an extension of time to file, which will give you additional time till 10/15/2020. This is only an extension of time to file and not time to pay so any taxes due would still need to be paid by the 07/15/2020 due date.

 

What about retirement contributions due dates? 

IRA’s and employer contributions to qualified retirement plans are also permitted till 07/15/2020.

This also applies to HSA Contribtions.

 

What if I have already scheduled a payment when submitting my Tax Return for 2019? 

Many Taxpayers have already filed their 2019 Tax Return and elected for the balance to be deducted from their bank account. If you have changed your mind and no longer want to pay now that these revisions have been made, Call the IRS Efile Payment Services 24/7 at 1-888-353-4537 to cancel your payment. Please wait 7-10 days after your return was accepted before calling. 

Cancellation requests must be received no later than 2 business days prior to the scheduled payment date.

 

Estimated Tax Payment updates

The 1st Quarter estimated tax payment that initially would have been due on 04/15/2020 is now also postponed till 07/15/2020. Keep in mind that the 2nd Quarter estimated tax payment is due on 06/15/2020. Right now, the IRS has not released any additional postponement regarding the 2nd quarter payment. So for right now, the estimated tax payments are to be paid as follows: 

1st quarter due 07/15/2020

2nd quarter due 06/15/2020

3rd quarter due 09/15/2020

4th quarter due 01/15/2021

Monitor this blog for updates regarding this!

 

What about payment plans I may have with the IRS? 

Installment agreements between 04/01/2020 and 07/15/2020 are suspended. You will not default on your Installment Agreements during this time. 

 

How can I apply for a Small Business Loan under the Coronavirus bill?

Please visit https://www.sba.gov/funding-programs/loans

Also see my blog post which discusses this in depth here.

 

 

References:

www.irs.gov

https://www.congress.gov/bill/116th-congress/house-bill/748/text

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top