- March 30, 2020
- Posted by: Rosemarie Harvey
- Category: independent contractor, small business tips, support, Taxes
The Coronavirus Disease pandemic has us all off track right now. As independent professionals, it’s hard to keep abreast of all the changes taking place around the COVID-19 tax relief or our tax obligations. To help out, I am providing a summary of filing deadlines for 2020 provided by the Internal Revenue Service (IRS). In addition, consult with your accountant for professional tax advice. For information about the coronavirus, see cdc.gov.
Tax Relief
According to the IRS website, the filing deadline for tax returns has been extended from April 15 to July 15, 2020. If you are owed a refund, file as quickly as possible, they suggest. This relief is automatic, and you do not need to file any additional forms or contact the IRS to qualify. If you cannot file by the July 15th deadline, then you may request an extension by filing Form 4868 through your tax professional, tax software, or using the Free File link on IRS.gov.
The relief also extends to your first quarter (Q1) 2020 estimated tax payments. You will automatically avoid penalties and interests on taxes paid by July 15, 2020. After that, penalties and interest will begin to accrue on unpaid balances.
Per the IRS, this relief only applies to federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2020. It does not apply to state tax payments or deposits or payments of any other type of federal tax.
Tax Obligation
Although you receive a relief for first quarter 2020 with payments extended from April 15 to July 15, 2020, your second quarter (Q2) tax payments are still due June 15, 2020, according to IRS guidelines.
Estimated tax payments are due as follows:
|
When to Pay Estimated Tax |
|
| Payment Period | Due Date |
| January 1 – March 31 | Changed for tax relief on account of Coronavirus Disease 2019
Original Date: April 15, 2020 New Date: July 15, 2020 |
| April 1 – May 31 | Unchanged
June 15, 2020 |
| April 1 – May 31 | Unchanged
September 15, 2020 |
| September 1 – December 31 | Unchanged
January 15, 2021. |
| Source: IRS.gov
https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2 |
|
Note: If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that’s not a Saturday, Sunday, or legal holiday.
Final words from RHBS
These are unprecedented times, and we are focused on our physical health as well as the health and safety of our loved ones, business partners, employees, contractors, and anyone else that makes up our team. We may also be experiencing hardship in our business at this time and wondering how to proceed after we pass through this health crisis. Please stay encouraged and remember that we are all in this together. At RHBS, we will bring you updates and tips that you might find beneficial as we navigate this new journey together. Please bookmark our Blog and return often for new posts.
Source: https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020
Helpful resource: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
Photo credit: This Photo by Unknown Author is licensed under CC BY-NC
Disclaimer: This article is for informational purpose only and not meant for legal or tax advice. Consult your accountant or an attorney for professional advice.