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PrimeGlobal member firm Grossman St. Amore discusses the tax implications brought on by Covid-19.
We are writing to make sure you have read or learned about the new deadlines that have been granted by the Internal Revenue Service and the various state governments. Most importantly, we want you to know that your returns will not need to be completed by April 15th this year except as noted below.
The IRS has extended the normal deadline for individuals to July 15, 2020. This includes both the requirement to file your return and to pay any taxes owed, so you won’t be charged any penalties or interest during the extension period.
Additionally, Fiduciary, Trust, Gift and C Corporation tax returns have also been extended to July 15th.
Everyone gets this extension automatically — you do not have to request it or have been personally affected by the coronavirus.
The deadline for IRA and HSA contributions for the 2019 tax year has also been extended to July 15, 2020.
The deadline for April 15 estimated tax payments has also been extended to July 15. However, the regularly scheduled June 15 estimated tax payment deadline has not been extended.
Some states, including New York State, have extended their own deadlines to match the IRS extension, while others have not extended them at all. We will check with your state’s tax agency to find out what state extensions are being offered, if any and make sure all of your returns are filed timely.
The Federal extension covers only income taxes, not employment taxes or any other tax deadlines.
The deadline for partnership returns (Form 1065) and S corporation returns (Form 1120S) did not get extended. Any Federal returns that were required to be filed on the earlier March 16 date should have been filed by then to be considered on time, as well as any returns with filing or payment due dates other than April 15.
Individuals can request an additional extension from July 15 to October 15, 2020, by filing Form 4868. Businesses and trusts who need additional time can file Form 7004. However, in both cases, any extension beyond July 15 only extends the time to file your return. You still must pay any taxes owed by July 15 in order to avoid penalties and interest.
Grossman St. Amour CPAs
Located in Syracuse, New York, Grossman St. Amour CPAs has been providing businesses and individuals with services in the areas of accounting, audit, taxation, business planning and valuation, financial planning, investment management, and fraud prevention and detection since 1957. Our mission is to understand the business of our clients, identify their business and financial needs, and to provide the services that will help them achieve their business and personal financial goals. This begins with a high level of involvement on the project or engagement by the partners. We believe it is essential to develop close relationships between the owners of the company and our partners to provide proactive solutions throughout the year. This has not only resulted in enhanced services to our clients, but has also provided our firm more opportunities to grow.Learn more