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Archive for the ‘TaxDay’ Category

The Second Year When April 15 Is Just a Regular Day

Posted by taxguru on April 15, 2021

 

MallardFillmore-TaxDayReminder(4-23-21)

 

NoNeedToRush(4-15-2021)

WastedMonth(4-15-2021)

TaxExtensions(4-15-2021)

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Tax Day is Now May 17 For Individuals

Posted by taxguru on March 17, 2021

After a lot of teasing us with “will they or won’t they,” IRS has decided to give most of the country until Monday, May 17 to file 2020 tax returns or extensions.

Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline

While we should all appreciate any extension of the filing deadline, just moving it back by one month seems a bit half-assed.  While most people were expecting another July 15 Tax Day, I was betting on June 15, which would have brought everyone else in sync with Texas, Louisiana and Oklahoma,

Of course, there is a possibility that one month from now, IRS may move Tax Day out by another month or two, adding even more confusion to the process of preparing and filing tax returns.

It’s another crazy Tax Season.

Update 3/19/21:  There are a lot of critics, such as the AICPA, of this limited filing delay because it doesn’t cover businesses, which have a lot of new confusing issues to deal with from the pandemic, and the fact that IRS supposedly still wants people to send in their first estimated (ES) tax payment for 2021 by April 15.  Again, this is very much like the confusion we went through at this time last year, when for a while, IRS was requiring the second ES payment for 2020 to be made by June 15, while the first wasn’t due until July 15.  IRS is a master at complicating what should be a simple across the board delay for everyone.    

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Delayed Tax Day for Three States

Posted by taxguru on March 12, 2021

While we are all waiting for IRS to announce a nation-wide extension of the filing deadline for 2020 tax returns, they have officially given a two month delay – until June 15 – to three States which had some nasty weather recently.

Victims of Texas winter storms get deadline extensions and other tax relief

IRS announces tax relief for Oklahoma severe winter storm victims

IRS announces tax relief for Louisiana severe winter storm victims

 

The insane two trillion dollar “stimulus” bill that was signed into law yesterday has some tax related items that will require modifications to the IRS’s computers, as well as to the software we practitioners use.  Trying to get all of that up to speed with an April 15 filing deadline will just make an already crazy Tax Season even more so.

While everyone will still have the option to file for their own extensions, until October 15, there is a big difference between that approach and IRS delaying the initial filing deadline.  If IRS doesn’t give us all extra time, we will have to do some tax calculations and submit payments for any expected taxes due by April 15. 

If IRS gives us the extra time like we had last year, those payments won’t be due until the new Tax Day, which will hopefully be July 15 for everyone.  It would also delay the deadline for some other tax return related events, such as when money could be deposited into an IRA account and be deducted on the 2020 returns.

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Another Uncertain Tax Season

Posted by taxguru on March 10, 2021

It’s impossible not to have déjà vu feelings related to last year, when at this same point in time, there was a confusing “will they or won’t they” tension in the country in regard to IRS extending the official filing deadlines for 2019 tax returns.  We are currently in the midst of exactly that same debate for 2020 returns, with calls for July 15 to be Tax Day again this year.

Of course until IRS makes its official declaration of a later tax filing deadline, we have to operate as if the normal due dates of March 15 and April 15 are still our targets.

Very interesting analysis of the current status of how behind IRS currently is in this article from Accounting Today:

Momentum builds for delaying tax deadline

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Tax Day For Texas is June 15

Posted by taxguru on February 22, 2021

Due to the massive Winter freeze and resulting loss of power, the entire State of Texas has been granted more time by IRS to file their 2020 income tax returns. 

Victims of Texas winter storms get deadline extensions and other tax relief

As explained in this news release from IRS, everyone in Texas, plus those outside that state who were affected by the storm, will have until June 15, 2021 to file their business (normally due March 15) and individual (normally due April 15) income tax returns.  

While there have been rumors of another nationwide extension of Tax Day based on the Covid-19 shut-downs, nothing concrete has been set regarding that. 

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Tax Day Remains July 15–File Extensions For More Time

Posted by taxguru on June 30, 2020

After a lot of speculation that the official Tax Day for 2019 income tax returns would be moved out to September 15 or October 15, IRS ended the confusion with a news release.

Taxpayers should file by July 15 tax deadline; automatic extension to Oct. 15 available

The big difference between having IRS just push the Tax Day to October 15 versus us filing the 4868, is when any expected tax balances need to be submitted to IRS and the States.  IRS pushing Tax Day to 10/15 would have meant that no form would need to be filed by July 15 and no money would have to be sent in until Oct 15.

I had actually been expecting the additional delay, not just for the hassles of getting everything together to prepare 2019 tax returns by July 15, but also for the fact that allowing people to hold onto their 2019 and 2020 tax payments until October 15 would have been a much more efficient method of providing economic stimulus money to people than the previous method was.  Of course, this is SOP for government operations, to choose the least efficient method of doing things

Most State tax agencies have been piggy-backing on the IRS deadline, so extensions should be filed with them as well. Check your states’ websites to be better informed.  As of today, I notice that the AICPA’s chart of State tax filing dates hasn’t been updated since 6/18/20.  Hopefully, that will be amended soon to take into account the various States’ conformity or not with IRS’s declaration.

I am a little disappointed that Tax Day wasn’t moved until later, but I am grateful that at least IRS didn’t wait until July 14 to spring this announcement on us.  That gives us two weeks to do rough calculations of 2019 taxes and prepare the extension forms.

Posted in extensions, TaxDay | Comments Off on Tax Day Remains July 15–File Extensions For More Time

IRS Broadens Application of July 15 Filing Date

Posted by taxguru on April 9, 2020

IRS has just published a press release moving more deadlines to July 15 than just the ones covered in their earlier pronouncements. 

IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others

Of key interest to me:

The due date for the second installment of 2020 estimated taxes for individuals has been moved from June 15 to July 15.  No surprise there; except what took them so long to fix that screw-up?

Other tax returns and payments that would normally be due in between April 1, 2020 and July 14, 2020 now have until July 15.  This applies to some fiscal year C-corps, such as those with a tax year ending 1/31/20 (normally due 5/15/20) and those with a tax year ending 2/29/20 (normally due 6/15/20).

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Making the Best of House Arrest

Posted by taxguru on April 9, 2020

Even though 2019 tax returns aren’t due in until July 15, it’s not a bad idea to use this time to get them done as soon as you can.  Of course, my usual advice still applies.  Don’t rush tax returns in until you have all of the information.  Amended returns do receive more IRS scrutiny than do original ones; so it is safest to be completely confident in the completeness and accuracy of your returns before sending them in.

TaxesDoneEarly

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IRS Tries To Explain the New July 15 Tax Day Details

Posted by taxguru on March 25, 2020

As is almost always the case with the wonderful tax systems in this country, even the simplest of concepts is more complicated and twisted than necessary.

Moving the 2020 Tax Day for 2019 tax returns to July 15 has already created a lot of confusion among taxpayers and tax practitioners.  To remedy, or add to, the confusion, IRS has already published 24 FAQs related to this new date.

Filing and Payment Deadlines Questions and Answers

The University of Illinois TaxSchool has posted this video explanation of the IRS FAQs.

As the presenter says, these FAQs are fluid and will almost certainly be changed before July 15 comes around and as a result of items in the massive stimulus bill that is working its way through Congress.

One of the craziest answers from IRS is Q16 regarding the due date of the second estimated tax payment for 2020.

A16. No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020.

The second quarterly payment is due a month before the first payment.  Does this make sense to anybody?  In the Bizarro world of Washington DC, it probably does.

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Tax Day is now July 15

Posted by taxguru on March 20, 2020

TaxDay2020

 

Finally, a bit more common sense.  Treasury Secretary Mnuchin has finally expanded the filing deadline for 2019 tax returns to July 15.  IRS has yet to issue a press release on the specifics of this new due date and what it will mean in what has now become real life in this country. This will remove at least one issue to worry about during the current shut-down of the country. 

From Fox News: Tax Day moving to July 15 amid coronavirus crisis, Mnuchin announces

States that mirror IRS due dates have or will also be setting their 2019 tax return deadlines as July 15.

California’s Franchise Tax Board has extended its earlier June 15 deadline to match the new IRS due date of July 15.

State Postpones Tax Deadlines Until July 15 Due to the COVID-19 Pandemic

 

[Update 3/21/2020] – IRS has published a press release explaining the new filing deadline for 2019 tax returns and extensions.

Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed

If you can’t get your tax return done by July 15, taxpayers will need to file actual extensions by that date.

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