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Understanding the Coronavirus (COVID-19) and Your Taxes

The novel coronavirus, COVID-19, is fast making its way across the United States. The global health pandemic has been impacting major corporations to local businesses and everyone in between. In response to everyone feeling the effects of COVID-19, the IRS, United States Treasury and the federal government have recently announced several changes that could impact you and your business. You may have heard about the 90-day tax extension plan, but are not sure who—or what—that covers. The experts at SD Associates are sharing everything you need to know about the tax deadline extension and are here to help you navigate the changes with ease. The IRS will continue to monitor issues related to the COVID-19 virus, and updated information will be posted on a special coronavirus page on IRS.gov.

As of March 20th, 2020, the Treasury Department announced that Tax Day this year will now fall on July 15th, 2020.
Normally, all tax returns and anything you owe are due by April 15th, 2020. With this new extension, you now have an additional 90 days to file and pay your 2019 taxes. You will not need to file an extension to file past April 15th, 2020. The new July 15th, 2020 tax deadline is applied automatically to all taxpayers. If you need more time to file, you can request an extension to October 15th, 2020. The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.

The deadline for taxpayers who make quarterly income tax payments (self-employed) is also extended to July 15th, 2020.
This means that estimated payments that were due for the first quarter of 2020 are due on July 15th, 2020.

Pennsylvania’s state taxes are also extended.
Many states are adopting the federal extension of July 15th, 2020 and Pennsylvania is included.

If you owe taxes for 2019, you can delay your payment to the IRS until the extension date.
You will not incur any penalties or interests until July 15th, 2020.

Who is eligible for the extension deadline?
Individuals who use Form 1040, corporations who use Form 1120, partnership, associations and trusts and states who use Form 1041. While uncommon, fiscal year partnerships, associations and companies that also recognized the April 15th, 2020 filing deadline are also eligible for the extension.

If you have a tax payment and already filed and scheduled your payment, you will need to reschedule.
If you have filed and scheduled your payment for April 15th, 2020, you will need to cancel your payment and reschedule it. All changes to payments must be completed two days prior to the extension deadline of July 15th, 2020.

Families First Coronavirus Response Act
This legislation provides additional relief for individuals, self-employed and businesses impacted by COVID-19 including emergency and paid sick leave.

During this extension period, SD Associates in Elkins Park, P.A., is here to help you every step of the way and answer all of your questions. We’re all navigating uncertain waters together, and that’s why we want to provide you with the most up-to-date-information available. We understand how important your refund is now more than ever and we’re here to help you maximize your tax return. Contact us today for all your tax needs.

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