Tax deadline postponed.
But you should still get your returns completed now.
This morning both President Trump and Secretary of Treasury Mnuchin have announced that both the tax return filing deadline and payment deadline will be moved forward to July 15, 2020. While automatic extensions of time to file have always been available, this move will allow some breathing room for many taxpayers. There will be no penalty for deferring your payment and no interest will accrue during this period.
Getting more time to pay your tax bill could be a lifeline if your income is sluggish right now and you're worrying about making ends meet. But, if you think you're due a refund from the IRS, then waiting until July to submit your return is a bad idea. In fact, if you're sure you're getting a refund, you should actually file as soon as possible to get that cash back into your pocket sooner.
Here’s the real catch…
The real Catch-22 is how do you know if you're due a refund if you haven't tackled your return? You don’t know. And, what if you owe money, do you know how much you’ll owe, and will you be ready to pay it come July 15? This all means, that although you can delay your tax return filing, it is probably not a good idea to delay its preparation.
We’re ready to get your returns wrapped up.
Yes, it is somewhat more challenging preparing tax returns with the current stay home orders in California. Thankfully though, we’ve long ago been prepared for remote work with both our team members and clients. If you have already gotten your tax documents to us, thank you. We are working to get your finished tax returns back to you as soon as possible.
If you’ve not yet gotten your tax documents to us just give us a call at (831) 758-5966 and we will let you know the many ways we can safely and securely get your documents to us, whether electronically or physically.
What about the economic stimulus package
and cash payments to taxpayers?
As of right now, the Senate, House and Whitehouse are still working out the details for a sweeping stimulus package that would include direct payments to some, but not all, individual taxpayers. Included in the legislation we expect to see some type of relief for businesses as well, although the details are still in the works. We are watching it all very carefully and will let you know as things unfold and legislation is passed. One word of caution on all this, just because you read it on the Internet does not mean it is true. We are also seeing a lot of inaccurate reporting on these topics so be cautious and don’t hesitate to reach out to us with any questions or concerns.
Call the team at Scholl & Company, CPAs at (831)758-5966 with your questions and concerns during this difficult time. We are fully staffed and ready to help.