Good News – Coronavirus Tax Delay!
Many of us (and I include myself) are now working from remote locations which are primarily our homes / home offices. This is impacting our businesses significantly. There are many other that may not have a job today, or may not in the near future because of the Coronavirus (i.e. COVID-19). Now there is a Coronavirus tax delay.
New 2019 Tax Deadline is July 15th, 2020
Fortunately, Treasury Secretary Mnuchin has signed an order allowing taxpayers to delay filing their tax returns AND paying any taxes owed for 2019 until July 15th, 2020. This is a 90-day reprieve and and it will be greatly needed by many of us. While there are people that receive refunds every year (many people are in this boat), there are many others who will owe taxes for 2019. We have always been able to request an extension to file our tax returns, but have not been able to delay paying any taxes due past the April 15th deadline without incurring interest and/or penalties. Now, with this order, we’ll be able to take a deep breath and not worry about tax returns for the time being- up to July 15th. Remember, however, if you need an extension to file your tax return past that time you’ll need to still request your extension by filing the appropriate request. This will give you until October 15th, 2020 to file tax returns, (but you’ll have to pay the taxes due (estimated) by July 15th.
Take Advantage of Online Tax Services
Of course, you may want to file so you can get your refund quicker. If this is the case, I recommend that you have this done remotely so that you won’t have to go into a tax preparer’s offices. You may want to think about using Turbotax Online, or check into what H&R Block has for such remote services. You can fax your documents in, scan and email them in, or mail them into your tax preparer. Be sure that you think about securing your Social Security Number if you do this (i.e. don’t scan an email documents with social security numbers on them, unless the service provides secure/encrypted email or portal services.
If you have complex taxes, you’ll want to retain a CPA for your tax return preparations. It is worth asking your CPA how you can conduct your business together this year by avoiding meeting in person. Most CPAs will likely have thought about this and are probably offering services in such a fashion in response to the Coronavirus. Who knows – this may end up being the new normal to some extent.
Coronavirus Tax Delay until July 15th, 2020
To sum up – these are trying times. We all have our challenges because of the current outbreak situation. This a welcome bit of relief. Stay safe, and practice routines that fully leverage the offerings made available through technology and government actions. Cheers!
Learn More about Puget Sound Tax Law