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IRS delays tax-filing date to july 15, matching payment deadline
- djyaz1200 7y agoHeads up to small business entrepreneurs, SBA and other emergency financing options may be more readily available to you with 2019 tax returns completed so you may want to get them done ASAP if you haven't already.
- bnonhacker 7y agoThis is great advice--looking at it from that angle. To add to your advice, consider looking into the private sector for any potential help--interest forgiveness, loan consolidation, or even refinancing a home mortgage (get rid of the PMI, etc.). The private and public sector are two sides of the same coin for small biz entrepreneurs.
- nojvek 7y agoWhere are you getting this info from ?
- CamperBob2 7y agoIt's common-enough knowledge that the first thing any lender asks for will be copies of your 1040 or other forms for the most recent tax year. You don't have to pay until July, but it's not bad advice to go ahead and file, if you think you may need documentation for 2019 personal or business income.
- mharroun 7y agoThe deadlines for state taxes still remain.
- orblivion 7y agoDon't state tax forms take federal taxes as some of the inputs?
- Mountain_Skies 7y agoMany do and state tax policies often are intertwined with federal tax policies but each state has its own set of laws and policies, some of which will need to be changed if they want to match those of the IRS. The difficulty for some states is going to be that they're already tapping into their rainy day funds pretty heavily and unlike the federal government can't run deficits, so they could run into cash flow issues when delaying tax payments. Of course that's bound to happen eventually anyway as sales tax revenue plummets and the number of people who can't pay other taxes rises.
- paulmd 7y agoFortunately the vast majority of folks who didn't fuck with their withholdings will usually have a refund. So the state would actually get to hold onto your money for longer. It does, however, kind of neutralize the point of the stimulus bill to some extent because this encourages you to hold off getting your refund if you are in the phase-out region (75k to 99k) and your income went up in 2019. If you don't file before they send the checks, they use your 2018 number, so it's potentially better to not file until the last minute. Which means a couple hundred bucks per person that isn't out there stimulating the economy. Again, assuming an average person that didn't fuck with their withholdings. The threshold is outright bad policy but god forbid congressional republicans just pass a stimulus without trying to own the libs in the high-cost-of-living blue states.
- whatshisface 7y agoMeans-testing and making things worse the more money you have is bipartisan.
- Mountain_Skies 7y ago>own the libs in the high-cost-of-living blue states. Wasn't it originally planned to go to everyone until Speaker Pelosi blocked it and said it must be means tested?
- bradly 7y agoGov. Cuomo said the deadline in NY will follow the federal deadline.
- throw7 7y agoNY will follow the Federal filing date delay.
- usaphp 7y agoLooks like California pushed it to July 15 as well: https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2020-3-state-postpones-tax-deadlines-until-july-15-due-to-the-covid-19-pandemic.html https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2020...
- orblivion 7y agoI wonder about the Roth IRA deadline, since some people aren't sure whether they're above the cutoff until they do at least some of the calculations.
- slg 7y agoA nice benefit of Roth IRAs is that you can remove your contributions (not profits) without penalty. You can always contribute it now, leave it in cash so it is liquid, and then withdraw it if necessary at a later date.
- orblivion 7y agoAwesome thank you.
- frei 7y agoIt will be liquid, but it will still have attributable gains if the account value increases. That amount will also need to be removed, which will come from previous contributions, before your actual tax deadline, which may be extended to October. Just a heads up.
- henriquez 7y ago> if the account value increases. Kind of a big if for any retirement account right now unfortunately. But yeah, you would only pay a 10% early distribution penalty on any gains.
- lyrrad 7y agoThis is incorrect. Withdrawals from Roth IRAs follow particular ordering rules and one can withdraw direct contributions without a 10% penalty or tax. In general, direct contributions are taken out first, followed by conversions, followed by earnings. (For the exact rules, including more details on withdrawal ordering of conversions I'd recommend researching Roth IRA withdrawal ordering. Note that the rules for accounts like Roth 401k are different.) Direct contributions are not subject to tax or penalty when withdrawn, so if one can always withdraw their total direct contributions without tax or penalty from a Roth IRA, while leaving earnings in the account. Withdrawing taxable portions of conversions or earnings may result in tax and/or a 10% penalty, depending on ones circumstances.
- MichaelApproved 7y ago> Treasury Secretary Mnuchin announces decision in tweet Crazy how these announcements are done via tweet. It would be nice to have something formal listed on their website. Looking at their home page https://www.irs.gov https://www.irs.gov it still says "File Your Tax Return - Tax deadline is April 15,2020". Edit: Am I going crazy? The article used to say it was published on the 17th.
- nightski 7y agoI'm sure it will be updated. He probably just wanted to get the word out as soon as possible.
- MichaelApproved 7y agoIt's been 3 days... Edit: I could've sworn the article said it was published on the 17th. Now it says the 20th.
- tannerwj 7y agoThe payment deadline was moved 3 days ago, the filing deadline was moved this morning
- MichaelApproved 7y agoI could've sworn the article said it was PUBLISHED and UPDATED on the 17th. Now it says it was published and updated on the 20th.
- Shivetya 7y agothe COVID box to the left of the filing deadline does lead to a page with the proper dates.
- jonas21 7y agoInformation on the payment deferral was posted 2 days ago: https://home.treasury.gov/news/press-releases/sm948 https://home.treasury.gov/news/press-releases/sm948 There's a link to that page from the IRS home page. The filing deadline was just moved to July 15 two hours ago.
- deleted 7y ago[deleted]
- smallgovt 7y agoThis is good news for independent contractors who are struggling to make ends meet.
- dugmartin 7y agoYou should always keep a running estimated tax amount as an independent contractor and then keep that amount as either a buffer in your cash account or in a separate dedicated account.
- derision 7y agoEven if they have that amount and more set aside, extreme circumstances might wipe out all cash reserves
- dugmartin 7y agoI guess what I’m saying is that cash shouldn’t exist for you to use for anything else - the folks that that are expecting it have guns and their own courts and judges.
- sokoloff 7y agoThe penalties and interest for underpaying are quite reasonable and proportional, IMO (and the penalties are often waivable, making for only interest charges, which are very reasonable.) If it’s a choice between eating and keeping your car/house and paying your taxes on time, choose the former every time!
- frizkie 7y agoThis exactly. The IRS is not the Mafia.
- damon_c 7y agoRegardless, having the money needed to pay for last year's taxes sitting in the bank, equivalent to... a year or two of living expenses or so... and not having to empty it out as the world comes crashing down is kind of nice.
- yellow_postit 7y agoWonder how this will impact accountants. Usually they are looking forward to the pressure relenting as the tax season comes to an end.
- dannypgh 7y agoIt probably won't affect them nearly as much as widespread shutdowns, social distancing, and mass COVID-19 casualties due to hospital shortages will. I think it's useful to keep things in perspective - life in the United States is changing, and will be significantly altered for the next several months at least. My net worth on paper has fallen 30% this year, but right now there's exceedingly few places for me to spend money, so, there's that.
- bmj 7y agoThis is likely a godsend to H&R Block-style businesses. Many states are closing all non-essential businesses, and they would suffer quite a bit from having to close their doors a month before tax day.
- adrianmonk 7y agoMaybe it flattens their curve, too! With the deadline less than a month away, surely they have paperwork from some of their customers and can do those returns by April 15th. Then they can do another batch by July 15th.
- dharmon 7y agoDoes anyone know if this also pushes the 401(k) contribution deadline?
- i_am_viet 7y ago401(k) deadlines are calendar year. Are you thinking of something like the Roth IRA, where the deadline for the earmarking of contributions for the previous year is April 15?
- dharmon 7y ago"solo" / self-employed 401(k), which normally has a contribution deadline of April 15. I'm curious if that is getting pushed back as well.
- weej 7y agoThe announcement from the IRS can be found here: https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020 https://www.irs.gov/newsroom/payment-deadline-extended-to-ju...
- chanfest22 7y agoThis is a separate announcement from two days ago about the payment extension (not the filing extension that was separately tweeted this morning).
- weej 7y agoYou're right. My mistake. I intermixed the two as delayed income tax payment also applied to filing, which didn't, until today.
- chanfest22 7y agoDon't blame you ... it's super confusing
- teejmya 7y agohttps://home.treasury.gov/news/press-releases/sm948 https://home.treasury.gov/news/press-releases/sm948
- nodesocket 7y agoDoes this apply to quarterly tax payments for 2020 that are due April 15th as well?
- pwned1 7y agoYes.
- fortran77 7y agoMany small businesses already had to file by March 16. And even if they filed for "extensions", payments of all taxes was due then. Secretary Mnuchin wasn't telling the truth when he said "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties." I had to take a risk to visit CPA and prepare taxes by the March 16th deadline, and so did nearly every other small business in America. (California has a payment deadline of December 31st for businesses!)
- pwned1 7y agoOnly partnerships and S-Corps have tax return due dates on March 16. Those entities don't pay taxes.
- chrisweekly 7y agoS-Corps do pay taxes. Quarterly.
- pwned1 7y agoThe shareholders pay taxes. First quarterly due date is (was) April 15.
- jackschultz 7y agoThank god. My parents have a smallish accounting firm, and were so worried about still having to file. Things need to hold for that as well. The worry about employees coming in to the office and clients as well. They want to just close the office for two weeks and hold up with this all, as is the case everywhere. Still though, they're both very worried about clients calling in and still expecting their taxes to be filed which cases like this have happened in the past. For example, one didn't want to come to their office, and said they should FedEx the filing already, which means someone is going to have to stand in line with others at a FedEx store, which is absolutely not something to be doing now, no matter how spaced out the line is. This leaves the question of what they're supposed to do, because I'm sure there are clients with the attitude of this virus being overblown. And won't be happy if my parents come off as weak for not working. Obviously they should, but how much the client comes first is constantly an issue, especially now.
- pmorici 7y agoYou can pre-pay and print Fedex labels on their site and then just drop the package at the nearest Fedex box of which there are typically many around major cities. Zero reason to wait in any kind of line.
- pfranz 7y ago> I'm sure there are clients with the attitude of this virus being overblown. And won't be happy if my parents come off as weak for not working. I'm sure with everything going on there's some external thing they can point to; we're waiting for guidance from the IRS, our supplier is delayed because of this, etc. Or just be vague enough in your response that it could be for internal or external reasons.
- frabcus 7y ago2 weeks is too short a time to expect the lockdown for. It'll last certainly months, maybe a year (until vaccine found). Accountants would be well advised to shift to all digital means, taking scans of documents etc.
- 411111111111111 7y ago
- 0x8BADF00D 7y agoEveryone here should be extremely nervous about the future of our country. Congress and the President are seriously considering helicopter money, which will ruin the dollar and send us into hyperinflation. It’s not rooted in reality. Who are we borrowing from? The surplus nations of the world will divert their surpluses domestically due to COVID-19, not by buying US treasuries and holding onto dollars. The only reason the dollar is going up is due to people trying to get out of dollar denominated assets. If anyone here wants to get ahead of this, please at least consider buying silver. The dollar will become worthless.
- halfmatthalfcat 7y agoI heard buying silver is _not_ a good investment and all of the current bailouts being distributed are not just cash handouts (unless we’re talking about the personal stimulus part), but loans to companies which will be paid back. In 2008, all of the “bailouts” by the governments were loans that were paid back in full and the American people actually made a 50B profit, lowering inflation.
- quartzite 7y agoWhich is precisely why this bailout will cause inflation.
- somebodythere 7y agoGood, we desperately need some of that.
- gscott 7y agoA lot of people, companies and countries have borrowed money in dollars and now with the downturn on stocks and other assets they have to sell their dollar denominated assets to pay back loans that come due in dollars.
- quartzite 7y agoNot sure why you're being downvoted. We have massive debt and our Federal Reserve is now resorting to buying treasuries again but in spite of that yields are rising! This should disturb everyone. Helicopter money won't necessarily cause hyperinflation but it will cause some inflation along with massive new debt. Here's a reality check: MMT and related ideas are nonsensical. They cannot work. They will destroy economies where they are implemented.
- echelon 7y agoI was really counting on launching a startup this year. It's R&D heavy, and the timing is (was) just right for product/market fit. I bought a lot of equipment last year and started writing the software. I want to hire folks and do fundraising, but this seems like a really bad time for VC investment. Could I get a small business loan in this environment? Are there any subsidies?
- PopeDotNinja 7y agoA small business loan is usually for traditional businesses with physical equipment that can be repossessed, or something like a doctor's office where the risks are fairly well understood. Is you physical equipment something that could be re-sold for some notable percentage of the purchase price?
- echelon 7y agoThe equipment has a very small market, per the nature of the field. I don't think I can sell a bank on it, unfortunately.