The IRS just gave people even more time
There's been an almost constant flow of changes coming out of Washington DC for the last few weeks. A few minutes several new things were announced. Most of it doesn’t apply to the average person but there are two main things that I want to highlight that came out of IRS Notice 2020-23. This extends many deadlines that were hanging in suspense.
The one that’s going to effect the greatest number of people is the 2nd quarter estimated tax payment. An earlier notice pushed the first quarter payment back to July 15th but left the second quarter payment still due on June 15th. As of today (4/9/2020) the 2nd quarter estimated payment is now also due on 7/15. Many people will still be making their payment on the normal due date just because it’s become habit for them. If you’re not in a rush to pay you can hold on to your money for an extra month now. Just make sure you’ve got the money ready to make both payments on 7/15. Also keep in mind that this is just the IRS that we’re talking about. Many states will likely follow the IRS’ lead, but each state gets to set their own rules and due dates. Make sure you verify your state due date before skipping it.
The second one came as a surprise. Most of my posts focus on Taxpayer Representation and tax resolution matters. Through my office in Hartford County CT that’s my primary focus. The most common type of case I take on is for non-filers. Most people would expect someone who doesn’t file to owe each year, but many of them are actually owed refunds. One problem they face however is that once we cross 3 years from the original filing deadline, their refund is gone. Right now 2016 is the year that’s in jeopardy for that. Thanks to this new notice however there’s a little bit of breathing room. Like all the other things listed, they now have until 7/15. This is also just on the federal level. Each state will make their own decision on if they want to grant an extension as well.
If you have back taxes you need to file contact us today to ensure that you come back into compliance while paying the least amount of tax and getting any refunds you can. We work with clients both locally here in Windsor Locks, CT but also remotely with clients throughout the country.
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Windsor Locks, CT 06096