Among the many changes in our lives, our tax filing obligations have also been in flux. The new rules have been a moving target but we seem to have some clarity that we can work with. According to IRS guidance, current rules are as follows:
- The filing date for individual and trust income tax returns has been moved from April 15, 2020 to July 15, 2020
- The payment date for balances due on such returns has also been moved to July 15
- Previous cap of $1,000,000 on deferred tax payments has been removed
- 1st quarter estimated payment due date has also been pushed back to July 15
- Other April 15 filing deadlines, such as for gift and estate tax returns, remain at April 15
- The usual automatic extension of time to file income tax returns until October 15 will still be granted upon filed request; gift tax returns will be included in such requests if made prior to the April 15 deadline; if the extension request for the income tax return is made after April 15, a separate gift tax extension request will need to be filed prior to April 15 in order to extend the gift tax filing date
- Extension of the filing date to October 15 will not also extend the payment date – that will remain July 15
- Filing dates for non-April 15 deadline returns have not been changed – e.g. Form 990-PF deadline remains May 15
- State filing dates remain in flux – Ohio has pending legislation to mirror the federal deadlines but has not yet been enacted
So what should you do? Given the work at home restrictions that many tax preparers are under, they are likely going to be a bit less efficient than in years past so we would urge you to get your materials to the preparer as soon as you can. If you are due a refund, you will want to have your return filed as soon as possible in order to get your funds back. If you have a balance due, there is no harm in filing your return prior to the July 15 due date but there is no reason to pay the amount due before this same date. However, if the balance due is relatively nominal, it’s ok to pay ahead just to check that off your To Do list.
Like so much else these days, we are in uncharted territory when it comes to the filing of our 2019 income tax returns. If you have any questions about your particular situation, please feel free to reach out to any Gries Client Advisor at 216-861-1148.
And more importantly, stay safe – we look forward to seeing everyone in person again as soon as possible.