The Delayed 2019 Tax Deadline is Approaching!Posted on June 30th, 2020
As with many other aspects of our lives and work, the coronavirus pandemic has had some significant impacts on tax filing for small businesses. Many of those changes won’t be felt until 2021, so watch this space for upcoming discussions and information about how the CARES Act will affect 2020 taxes. In the meantime, your friendly local tax and finance experts have been hard at work securing PPP loans and supporting small businesses. Now it’s time for one last push towards tax day!
Some businesses will have already filed their 2019 taxes in advance of the traditional April 15th tax deadline, but many are no doubt taking advantage of the delayed filing deadline of Wednesday, July 15th, 2020. This is just a few weeks away, so if you haven’t already reached out to a tax specialist, now is the time.
The People First Initiative
The IRS has implemented a new People First Initiative designed to support people and businesses who are struggling to pay their taxes amidst the economic uncertainty spurred by the coronavirus crisis. Small businesses that have been impacted by coronavirus-related closures may be glad to know that this initiative, which also extends until July 15th, 2020 (and may be extended) includes relief relating to existing installation agreements and offers in compromise. It also suspends field collection activities, private debt collection forwarding, and field, office, and correspondence audits through July 15th.
What You Should Know About Extended Deadlines
The good news for small business owners is that, aside from the delayed deadline, there are no other major changes to how 2019 taxes will be filed. Earlier this year, I wrote about what to expect when filing 2019 taxes, including how the Tax Cuts and Jobs Act (TCJA) impacts small business taxes. The information in that article still rings true even though the deadline has been extended.
Small businesses that have not yet filed due to the delayed deadline do not have to file or pay taxes for 2019 until July 15th, 2020. More good news is that penalties and interest will not accrue before July 15th. In general, all state and local deadlines have been delayed in line with federal deadlines.
It is important to note that the extension deadline of October 15th for Form 1120 and Individual Form 1040 has not been delayed. Businesses wishing to file an extension should use Form 7004 to do so. Form 4868 is available for individuals that need additional time to file. Also note that Partnership (Form 1065) and S Corporation Form 1120S) tax returns currently on extension are still due by September 15th.
2020 Estimated Tax Payment Deadlines
Business owners should also know that there are delayed payment options for estimated tax payments at this time. First quarter estimated income tax payments for 2020, usually due April 15th, have been delayed until July 15th as well as second quarter estimated tax payments, which are generally due on June 15th.
Contact a Tax Professional
In uncertain times like these, changing deadlines and regulations may add additional stress for small business owners who already have a lot on their plate. That’s why it’s important to contact a small business tax professional in order to ensure that your tax obligations are met and to develop a plan for future filings.
e2E, LLC offers expert small business tax preparation services, including identifying problems that may result in IRS scrutiny and reviewing potential tax deductions that could limit your upcoming tax obligations. Our expertise can reduce your anxiety and the burden of adjusting to changing deadlines and regulations. Contact us today to learn how we can help!