Tax Deadline Update
In light of the national state of emergency due to the COVID-19 pandemic, the Internal Revenue Service (IRS) has extended both tax filing and tax payment deadlines until July 15 for Federal Income Taxes. Here are a couple of things worth noting that may affect you:
WHO DOES THE EXTENSION APPLY TO?
This extension applies to any taxpayer - whether an individual, trust, estate, or business - who previously had a federal income return or tax payment due on April 15. The extension applies to these taxpayers regardless of the direct or indirect impact of the COVID-19 emergency.
WHAT DOES THE EXTENSION APPLY TO?
The extension applies to any federal income tax filing and tax payment deadlines originally due April 15.
The extension does not apply to any other tax return or payments due on different dates at this point. Nor does this apply to state tax deadlines, which are dictated individually by the state. Wisconsin Department of Revenue has also extended their tax return filing and payment deadline to July 15, similar to the Federal changes. You can find the full details for the Wisconsin deadline changes on the Wisconsin Department of Revenue website. To see what state tax deadlines may have changed in a different state you are filing under, find the complete list of state agencies here.
The extension does not apply to any tax filings that have due dates other than April 15.
The extension does not apply to payroll and excise taxes or estate and gift taxes.
The extension does not apply to estimated second-quarter tax payments due on June 15.
WHAT ARE OTHER BENEFITS OF THE EXTENSION WORTH NOTING?
If you have already filed your 2019 taxes and owe taxes you have yet to pay, the deadline to pay without interest or penalties has also been extended to July 15. This includes the 10% additional tax on distributions from an IRA or workplace-based retirement plan.
In addition to the payment relief, this extension also has implications for your investment contributions. Under this extension, taxpayers are able to continue making prior-year contributions to their Individual Retirement Accounts (IRAs), Roth IRAs, workplace-based retirement accounts, Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (MSAs) through July 15 as well.
WHAT DO I NEED TO DO TO TAKE ADVANTAGE OF THE EXTENSION?
Nothing. Continue to file and pay taxes as usual by the new due date - the extension will automatically apply.
Do you still have questions regarding this extension? Visit the IRS’ frequently asked questions about the extension or read the notice in full here. If you want to talk with one of our account specialists regarding prior-year contributions or how you might be able to take advantage of this extension, contact us today.
