Important Clarifications Regarding the July 15th Tax Deadline Extension
The IRS has announced that the tax filing and payment deadlines for individuals have been extended to July 15, 2020. This means that you will avoid interest or penalties as long as you make your submission by then. However, it is important to note that this extension does not apply to every single thing related to your taxes. Please read this article to learn what is and is not covered in this deadline extension.
Applies to Many (but Not All) States
Authorities in California, Iowa, New York, and South Carolina have conformed with the new rule, but several states are not conforming, and have announced different tax filing or payment due dates. Be sure to confirm your CPA or state agency to determine precisely when filing and payments (including estimated payments) are due.
For a list of state agencies, please click here.
Additionally, the AICPA has a running list of state announcements. It’s good to check and make sure you take note of any that would apply to you. Access the AICPA’s list of state announcements here.
Deadlines for IRA Contributions
The IRS announced guidance that your 2019 contributions to IRA, Roth, or Health Savings Accounts can be made up to July 15th, 2020. We would imagine that it’s likely account custodians will be scrambling to make updates to their accounting systems now that the IRS has made this extension. If you can, we suggest you submit your IRA, Roth, and HSA contributions prior to April 15th if possible – as it will most likely save you from recordkeeping hassles later.
Extensions to File and Estimated Payments
What if, despite the July 15th extension, you still need more time? In this case you would apply for an extension. Regardless of when you apply, the “final” deadline to file your 2019 return will still be October 15th, 2020.
What about if you are making estimated tax payments, perhaps because you are a business owner? As of March 25, 2020, if you make estimated tax payments, your second quarter estimated tax payments will still be due June 15th, 2020 – even though your first quarter estimated payment is due July 15th!
Available Resources that can help
The extension does not apply to estate or excise taxes due (e.g. net income of private foundations). Also, information filings (e.g. S-Corp filings) are still subject to their ordinary deadlines.
Refer to the IRS Coronavirus Tax Relief page for more information on such deadlines.
As we get through this stressful period, it’s quite a relief to get the extra time to file and pay. But we don’t want to become complacent. As always we are here to support you, please contact us if you have questions.
Contributor
Chris Jaccard, CFP®, CFA is a lead advisor with Financial Alternatives in La Jolla, CA. When he’s not working on home improvement projects or trying to keep up with his kids, he loves to help successful families consider their alternatives and make better financial choices with the EXPERT™ Advisory Process. Schedule a time to chat about your situation or the latest project.