Covid-19 and Your Taxes
Latest news on filing and payment deadlines.
As you are aware, Covid-19 is wreaking havoc on the world as we know it. Our government is hard at work trying to find ways to make our lives easier in the wake of this illness. Normally, taxes are due by April 15 every year, unless that date falls on a weekend or holiday, in which case it’s pushed back a number of days. If you are unable to complete the filing process by April 15, you can file an extension which grants you an additional six months in which to submit your return without incurring a failure to file penalty. However, you normally have to pay your taxes by April 15, if you owe taxes to the IRS or the State. Failure to do so, accrues interest and penalties on the debt owed.
This year, due to Covid-19, tax-payers have an additional three months pay the IRS any amounts due without incurring interest and penalties. However, it is in your best interest to file your tax return in a timely manner if possible or file your extension as you would normally. The earlier you file, theoretically, the sooner you will receive your refund. The 3 month extension to pay allows you to keep your funds close for a little while before paying any amount due.
The Franchise Tax Board has also granted an extension to tax-payers to file California tax returns and make certain payments until June 15, 2020. This extended date may be pushed back even further if deemed necessary.
Please be aware that this is a fluid situation and deadlines may change as our Government makes decisions. We will keep you apprised of the situation as we become aware of the legal changes. More information will be coming as it is released to us.
If you have questions, please don’t hesitate to call. We are available by phone, email, or video conference as needed.