The New July 15 Tax Deadline
Yuliana Mendez - MYeCFO Financial Advisor
In its latest effort to help combat the economic impact of the COVID-19 pandemic, the Treasury Department and the IRS announced this week that the tax deadline would be extended from April 15 to July 15 to give people more time to file and pay their taxes. All U.S. taxpayers and businesses will now have a three-month extension to file their taxes without interest or penalties. Though our initial reaction to this news might be a sense of relief, it’s important to consider the following when deciding when to file.
It’s still a good idea to file before July 15.
You can wait until July 15 to file and pay, but it might also be a good idea
to file before July 15.
It’s important to note that the extension does not apply to individual states, so check the tax deadline with your state tax agency. Many states are extending the deadline, but there is no uniformity in this approach to date.
Many of our clients have businesses (LLCs, partnerships, S-Corps) and must normally pay the first estimated tax payments for 2020 profit by April 15. This deadline has also been extended to July 15. It’s important to note that estimated payments are based on projected profit for the year and by default most software programs assume 110% of last year’s profits. That assumption, of course, might be way off the mark in 2020 given the impact of COVID-19. It will be important to evaluate your company’s financials as July 15 approaches and adjust accordingly.
In closing, though getting a three-month extension might sound great, it doesn’t necessarily mean you should wait until July 15 to file. You should carefully consider your situation and file when you think it is best for you and your family.
Below are some additional articles I found helpful:
Disclosures: Non-deposit investment products are not FDIC insured, are not deposits or other obligations of MYeCFO, are not guaranteed by MYeCFO, and involve investment risks, including possible loss of principal. The information contained in this article is for informational purposes only and contains confidential and proprietary information that is subject to change without notice. Any opinions expressed are current only as of the time made and are subject to change without notice. This article may include estimates, projections, and other forward-looking statements; however, due to numerous factors, actual events may differ substantially from those presented. Any graphs and tables that make up this article have been based on unaudited, third party data and performance information provided to us by one or more commercial databases or publicly available websites and reports. While we believe this information to be reliable, MYeCFO bears no responsibility whatsoever for any errors or omissions. Additionally, please be aware that past performance is no guide to the future performance of any manager or strategy, and that the performance results displayed herein may have been adversely or favorably impacted by events and economic conditions that will not prevail in the future. Therefore, caution must be used inferring that these results are indicative of the future performance of any strategy. Index results assume re-investment of all dividends and interest. Moreover, the information provided is not intended to be, and should not be construed as, investment, legal, or tax advice. Nothing contained herein should be construed as a recommendation or advice to purchase or sell any security, investment, or portfolio allocation. Any investment advice provided by MYeCFO is client-specific based on each client’s risk tolerance and investment objectives. Please consult your MYeCFO Advisor directly for investment advice related to your specific investment portfolio.