With the Coronavrius epidemic impacting the US economy, the IRS and the Secretary of the Treasury have recently announced changes to 2020’s (2019 tax year) usual deadlines.
They are likely to continue releasing new updates, so make sure to check the publish or “last updated” date of any resources you’re reading online, and consult with a tax specialist for personalized help.
Tax Filing and Payment Extensions for 2020
The new tax filing and payment deadlines are now July 15, 2020, not April 15, 2020. There are several considerations to keep in mind re: federal vs. state taxes, extensions, business taxes, etc. Below are some detailed, up-to-date resources from Harness Wealth firm Withum:
- General Coronavirus Tax and Business Resource Center
- IRS Confirms Extension to File by July 15, 2020
- State-specific Sales Tax Updates
- Section 965 (Transition Tax, Repatriation Tax) Payment Still Due April 15th
- Employer Tax-free Benefits to Employee re: Coronavirus
Your Tax and Investment Strategies This Year
The extended deadlines for your tax filing and payments certainly buy you more time to plan for this expense. However, in light of recent market movements, we highly recommend considering tax planning beyond April 15th or July 15th.
Keep careful travel records in 2020: You may be temporarily staying in a different state than usual due to Coronavirus-related work from home or remote work situations, and that could affect your tax liability for the year. Keep careful records so that you have all the information and documentation you need for when you file for 2020 next year.
Taking a holistic approach to any major financial decisions by simultaneously consulting financial and tax advisory firms on an ongoing basis throughout the year, outside of just filing for 2019, is more crucial than ever.
If you have any questions about the best way to take full advantage of the expertise of tax and financial advisors, learn more about our firms and the Harness Wealth process here.
- Investment Strategies for the Impact of COVID-19
- How a Financial Advisor Can Help During Market Turbulence
- 83(b) Filing Deadline Extension: 2020 COVID-19 Exception for 30-day Window