Things are changing rapidly in our country and this includes tax payment deadlines. While the IRS is working on comprehensive tax relief measures to address the enormous impact of the corona virus, here are the immediate changes all taxpayers need to be aware of:
1.The IRS has extended the filing deadline for federal taxes and first quarter estimated taxes until July 15th without penalty or interest.
2. Changes to the filing deadlines for individual states have not been announced. They may change but are dependent on each state's own actions. Be sure to check your state’s status to avoid late filing penalties.
This situation is rapidly evolving, so watch for additional updates. Even though the filing deadline has been moved until July 15, since many of us have more time at home, this is an ideal opportunity to proceed with getting your taxes ready to be filed. Being proactive with your taxes allows you to be strategic regardless of whether you will have a liability or refund. If you do have a liability it is best to know how much you owe as soon as possible so you can budget to pay on time. If you are owed a refund, filing now will expedite getting the money back in your pocket.
Jonathan Medows is a certified public accountant licensed in New York, New Jersey, Maryland, and Pennsylvania. He is also a recognized expert in taxation for freelancers and the self-employed—often tapped for his expert knowledge and perspective on self-employment taxation by national and regional publications such as The New York Post, BusinessWeek, Forbes taxation blog, WebCPA, CPA Practice Advisor, and others. You can read some of Jonathan’s press coverage here.
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