2019 Income Tax Payments Extended by IRS

2019 Income Tax Payments Extended by IRS

By: Jason Watson / Posted Tuesday, March 17, 2020
Posted By: Jason Watson

2019 Income Tax Payments Extended by IRSUpdate March 20, 2020, Treasury Secretary has also extended the tax filing deadline from April 15 to July 15.

Two things…

As reported by NBC New York, Fortune and Wall Street Journal,

The U.S. government will postpone the April 15 tax-payment deadline for millions of individuals, giving Americans another 90 days to pay their 2019 income-tax bills in an unprecedented move. The IRS, using authority under President Trump’s national-emergency declaration, will waive interest and penalties as well, Treasury Secretary Steven Mnuchin said at the White House Tuesday. The delay is available to people who owe $1 million or less and corporations that owe $10 million or less, Mr. Mnuchin said.

This certainly takes the anxiety out of making income tax payments from a federal perspective, but each state might be different. We suspect states will fall into line, but we encourage everyone to keep the gas pedal buried and get those darn tax returns filed just the same.

There are two penalties; failure to file and failure to pay. Prior to the update, there was still a requirement to file on time… just not pay on time. Now both of those are extended to July 15, 2020.

Federal tax refunds will be processed as usual. Not sure how this impacts 401k and IRA contributions (sorry). Estimated tax payments for Q1 remain due April 15 (again, as far as we know).

Online Tax Accountant

WCG has been built for remote tax preparation as online tax accountants from the beginning of our firm (thank you pilots and flight attendants!). Over 80% of our clients are outside Colorado. In addition, WCG has been built for all staff members to work from home. Long before all this craziness, we already had remote setups including telephones (both physical handsets and apps on our cell phones). Employees were already encouraged to work from home one day per week.

We’ve had this figured out! And we can handle all your tax needs without disruption. Thanks again!

Getting Started

Learn about important tax deadlines, document due dates, and other business tax return info.

Getting Started

Learn about important tax deadlines, document due dates, and other business tax return info.

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We see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. As Chris Rock says, just because you can drive your car with your feet doesn’t make it a good idea. In other words, let’s not automatically convert “you can” into “you must.” Yes, it is fun to brag about how complicated your world is at cocktail parties, but let’s not unnecessarily complicate it for the bragging rights.

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We typically schedule a 20-minute complimentary quick chat with one of our Partners or Senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax prep, and more importantly tax strategy and planning?

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