Dear Valued Clients,
As everyone knows, the COVID-19 virus has caused a major and unprecedented disruption in our communities. Our top priority is meeting deadlines for our clients and providing them with the information and support that they need. We are working extremely hard to make sure the highest level of service that you are accustomed to receiving from us stays steady, even during the crisis. There is plentiful information that is circulating online but concerning taxes and deadlines; we wanted to share some of the important items directly our clients:
- The deadline to file tax returns has been extended. Returns and extensions are now due on July 15, 2020, rather than April 15, 2020. No interest or penalties will accrue on taxes owed until after this date.
- If you owe state taxes, some states still have the April 15, 2020 deadline. Check with your state’s tax department to find out if they have decided to follow the Federal government’s extension.
- The “90 day” deferral period refers to the payment of taxes – both for 2019 taxes that would normally be due with extensions or filed returns, and 1st Quarter estimates for 2020 for individuals and corporations.
* This deferral removes any interest and late payment penalties associated with these payments that would otherwise be due until July 15, 2020, and includes self-employment taxes paid as part of an individual tax return (Form 1040).
* The maximum deferral for individuals is limited to $1 million, and for corporations, the cap is $10 million. If your total tax bill exceeds those amounts, we will recommend payments to the extent it exceeds those maximums.
While this gives individuals, corporations, and accounting professionals much-needed relief, those who believe they will be entitled to a refund are still urged to file on time. Many families are dealing with a loss of income, and the IRS has indicated an expedited processing to get the money back to you.
We stand ready to either prepare or extend your income tax returns in the same manner as always. Like many businesses, we are working to remain ‘open.” Please don’t hesitate to reach out by phone or email so we can discuss timely and strategic delivery of our services.
As always, we very much value your business and will continue to be your trusted partner through these uncertain times.