Ted Talks Taxes: Filing Relief

Ted Phillips, The Del Ray CPA

(571) 312-1169

FAX (571) 227-7907

Ted@TheDelRayCPA.com

114 E. Randolph Avenue

Alexandria, VA 22301

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IRS Announces Filing Delay

ESTIMATES AND OTHER TAX DEADLINES

In addition to extending the federal payment deadline, the IRS has delayed the date that federal estimated taxes must be paid. For those clients that pay these quarterly estimates, the first quarter total will now be due July 15, 2020. This will presumably delay the three remaining quarters as well, but Congress is currently discussing pushing the first quarter back even further, so other dates are not yet certain.

Note that for tax return packages that we have already mailed, the due dates for returns and estimates will not reflect these updates. Please contact us if you have any questions about instructions.

It has not been stated definitively if other items typically due on April 15th, such as IRA contributions and FBAR forms, will also be extended. We will continue monitoring IRS announcements on these issues, and make sure to give updated information to those clients it will affect.

After delaying the deadline for 2019 federal tax payments earlier this week, the Treasury Secretary has announced today on Twitter that the deadline for filing tax returns will also be delayed until July 15, 2020. This is meant to give some relief to taxpayers and preparers alike, given the business closings, quarantining and other difficulties we are all experiencing due to COVID-19.

Our office has and will continue to operate, so please continue to send in your tax packages and additional documentation as usual. We are limiting meetings for our clients' safety, but call or email any time, and let us know if you would like to get set up with the portal so you can upload documents from home.

For clients already in or still planning to submit documents, the delay means that we will not need to consider extending and you will not need to make payments until July. However, we will still be completing returns as they are complete, and it is still to your benefit to file earlier, especially if you are expecting a refund. Another reason to plan on filing timely is that, at this point, it is unclear if every state will conform with IRS's decision.

STATE DUE DATES

It is now up to each state to decide whether it will follow IRS in extending its tax due date for 90 days. It is likely that many states will, but until we hear definitively, we will be working from the assumption that the usual deadlines still apply.

Here are the currently stated due dates for the state returns we prepare most often. Please note that some of these are likely to change within the coming week:

DC: No announcement--payments and returns still due April 15.

Virginia: Payments delayed to June 1, returns still due May 1.

Maryland: Payments and returns delayed to July 15

Indiana: Payments and returns delayed to July 15

Illinois: No announcement--payments and returns still due April 15.

Link to Document Portal