2020 Tax Deadline Extended to July 15th!!!

On March 18, 2020, the IRS announced that the due date for certain Federal income tax payments was being extended from April 15, 2020 until July 15, 2020 as a result of the Coronavirus outbreak. The State of Utah followed suit on March 26, 2020, confirming that individuals in Utah will be given the same relief on their 2019 state taxes.

The July 15th extension is automatic for Individuals, Trusts, C-Corps and Non-Profits. Even if you’ve already filed your 2019 tax return, you still have until July 15th to make your payment. In addition to filing and paying tax, the notice allows extra time to make contributions to an IRA or HSA and extra time to make your first quarterly payment for 2020. Furthermore, anyone making monthly payments to the IRS as part of an installment agreement will automatically be allowed to skip the next 3 monthly payments!

We urge caution for business owners; as the due dates for payroll tax, sales tax and excise tax are NOT extended. That being said, there may be some relief for employers through the CARES Act in the form of a Payroll Protection Loan (see your banker for more info) or a 2-year deferral of the employer’s share (but not the employee’s share) of payroll taxes. Also, not being extended is the statute of limitations which means that you still only have until April 15th to claim a refund from the 2016 tax year. Fiscal year filers with a due date other than April 15th are also not extended and ironically, the second quarterly estimated payment, due June 15th remains unchanged. Finally, it goes without saying that, if your birthday falls on April 15, it will not be extended either.

If you need more time beyond July 15, you can still file for an extension of time to file that would be good through October 15th. We recommend sending an estimated payment along with the extension to avoid penalties. The IRS has a comprehensive Q&A located on it’s website, for anyone needing more detailed information. One final resource for small businesses is the SBA's Disaster Loan Assistance program. You can apply online at www.sba.gov. Both the Fed and the State have indicated that even though a majority of their employees are working remotely, their phones are open, and refunds are being issued in a timely fashion. The Tax Company staff is also working remotely and are available to assist you via e-mail and by phone if you have any questions. Please try to keep your spirits up and above all be kind to one another as we all go through these though times together.