On March 20, 2020, Treasury Secretary Steven Mnuchin, announced that the April 15th filing deadline has been moved to July 15th for all taxpayers and businesses. All individual taxpayers and businesses will have this additional time to file their tax returns and will not be required to file an extension request on April 15, 2020. All taxpayers have until July 15th to pay the balance of their 2019 tax due without interest and penalties. This extension of time for payment also applies to the 2020 Federal first quarter estimated income tax payments (including payments on self-employment income) due on April 15, 2020.
Details and guidelines regarding the new deadline are developing and the Treasury Department and Internal Revenue Service are expected to issue additional guidance to reflect the new deadline and other related issues. The March 20th announcement did not address second quarter estimated tax payment that are due on June 30th, payroll filing tax deadlines, or the IRA contribution deadlines for 2019, which would normally be April 15, 2020. We will keep you updated on these and any other items as more guidance is available.
The California Franchise Tax Board is also postponing until July 15th the filing and payment deadlines for all individuals, trusts and business entities for:
- 2019 income tax returns;
- 2019 income tax return payments;
- 2020 1st and 2nd quarter estimated tax payments;
- 2020 LLC taxes and fees; and
- 2020 Non-wage withholding payments.
For those of you who live in states other than California or are required to file state income tax returns in states other than California, we are monitoring the developments in those states as well. It is still a very fluid situation as the state taxing authorities are working on their responses to Treasury’s announcement on Friday.
We will monitor this, and keep you updated as information is known.
We will continue to work on the tax return information that has been submitted to our office, and we will complete the returns that we are able to complete. If you expect to owe additional taxes, please communicate with us and continue sending your tax information to us so that we can work on estimates of the balance due. Thus, when July 15th comes around you will be prepared with your payment amounts.
You can continue to submit tax information via our portal. Since we are not in the office daily, the portal or email for small items, is the best way to get us your tax information. For your protection, if sending anything via email, please password protect your files if they have sensitive personal information in them.
We understand that during this time, filing income tax returns is not a top priority. Hopefully this good news regarding the extensions for the tax return filing and payments will ease some of the stress in everyone’s life now. Please continue to take care of yourself and your family. If you have any questions or concerns, please do not hesitate to reach out to us.
Susan Lash, CPA
DISCLOSURE: Running Point Capital Investors, LLC (“Running Point”) is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Running Point, including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request. RP-20-03
