Tax Season Update – 2020

Last updated on June 24, 2020

The IRS has answered questions regarding the decision to move the tax filing deadline to July 15, 2020 and FAQs have been posted on their website.

In a nutshell, the filing and payment extensions are available for Forms due on April 15, 2020 and include individuals (Form 1040), trusts (Form 1041), and C-Corporations (Form 1120).

Deadlines for contributions to IRAs, employer retirement plans, health savings accounts, and Archer medical savings accounts are extended to July 15, 2020.

The extension relief does NOT apply to fiscal-year taxpayers (unless the due date falls on April 15, 2020), returns originally due on March 15, 2020 including partnerships (Form 1065) and S-Corporations (From 1120-S). It also do not provide relief for payroll and excise taxes or your obligation to make your second 2020 estimated tax payment due on June 15, 2020.

Extensions to October 15, 2020 are still available if filed by July 15, 2020.

If you elected to have your balance due paid electronically on April 15, 2020, that payment will occur as originally scheduled unless you cancel. To cancel your payment, call (888) 353-4537. Cancellation requests must be made no later than 11:59 p.m. ET two business days prior to the scheduled payment date. If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment

California has extended the due date to July 15, 2020 (personal, partnerships, LLCs, all corporations, trusts, and non-profits) for taxpayers affected by COVID-19. The FTB considers all Californians to be affected. Please check the FTB website for COVID-19 FAQs. The extension of time to pay applies as well. We believe your second estimated payment for 2020 due June 15 should be made, consistent with IRS guidelines.

We have a significant number of clients and are now performing the work without the normal increase in staff.  We will each have to do more functions and our turnaround will be a bit longer than normal but be assured, we are working on tax returns.  We strongly encourage you to mail us your documents or upload them to our secure file sharing server as soon as practical.  We consider the new due date to be a welcome relief for those impacted by COVID-19 but not an excuse to wait until July to get us your information.

We fully intend to provide you quality service even though we cannot meet with you face-to-face.  We can talk on the phone or communicate by e-mail.  We are staying on top of the ever-changing landscape and will post additional updates as necessary.