This is an update to our original post: (3.17) The IRS tax payment (not filing) deadline has been extended from 4/15 to 7/15.
Update 3/20/20: Contrary to guidelines announced earlier this week, this morning Treasury Secretary Steven Mnuchin announced that the April 15 tax filing deadline will be extended to July 15.
Here’s what we currently understand:
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All April 15 tax filing deadlines are extended until July 15. This new deadline applies to C Corporations and individual returns (which include non-partnership LLCs).
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As previously announced, taxpayers are being granted an extension to pay taxes which are now due July 15. Originally there was a limitation on the payment extention, applying only to individuals who owe $1 million or less and corporations that owe $10 million or less. Because filing deadlines are now extended, we believe the payment extension applies to all taxpayers.
Whether Ceterus works directly with you on taxes or you work with an independent tax professional, Ceterus recommends that you continue to work through the tax preparation process with normal urgency. Here’s our reasoning:
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Finalizing a business or personal return will provide information that informs you about the past and, importantly, information about future cashflow.
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In terms of performance, a final return is definitive as to your 2019 results. That is critical as you plan for 2020.
In terms of cashflow:
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Payment Due? If you have a payment to make, better to be aware of that today as you plan, even with additional time to pay.
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Refund Available? Where you are owed a refund, filing the return timely means faster cash in hand for you. Also, filing your return prevents scammers from fraudulently filing a return using your social security number.
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Finally, some lenders including the SBA may require a copy of your final 2019 returns for new or existing loans.
At Ceterus, we are keenly aware of our role as a service provider to small businesses. As your tax preparer, know that we will work at your pace to finalize your returns with or without this change. Original Content: Yesterday Treasury Secretary Steven Mnuchin announced that taxpayers were effectively being granted a 90-day extension to pay taxes that would ordinarily be due April 15, 2020. The delay is available to people who owe $1 million or less and corporations that owe $10 million or less. This is part of a broader set of initiatives planned and in planning by the government to support the business community in response to the COVID-19 epidemic.
Two important comments:
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Ceterus is awaiting a more formal statement from the Treasury Department but we expect the rules to be consistent with Mr. Mnuchin’s statements.
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This does not change the filing deadline itself; returns that are due April 15 must be filed or extended by April 15.
Whether Ceterus works directly with you on taxes or you work with an independent tax professional, Ceterus recommends that you continue to work through the tax preparation process with normal urgency. Here’s our reasoning:
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The deadline has not changed.
-
Finalizing a business or personal return will provide information that informs you about the past and, importantly, information about future cashflow.
-
In terms of performance, a final return is definitive as to your 2019 results. That is critical as you plan for 2020.
In terms of cashflow:
-
Payment Due? If you have a payment to make, better to be aware of that today as you plan, even with additional time to pay.
-
Refund Available? Where you are owed a refund, filing the return timely means faster cash in hand for you. Also, filing your return prevents scammers from fraudulently filing a return using your social security number.
-
Finally, some lenders including the SBA may require a copy of your final 2019 returns for new or existing loans.
At Ceterus, we are keenly aware of our role as a service provider to small businesses. As your tax preparer, know that we will work at your pace to finalize your returns with or without this change.
