CPA’s track rapid-fire changes in tax law. Here’s what you need to know.
SANTA BARBARA, Calif. - Lawmakers and the IRS are keeping local tax preparers extra busy as they adjust to the stunning downturn in the U.S. economy because of the Coronavirus pandemic.
Leaders in Washington and Sacramento are looking for creative ways to help Americans and businesses through this growing crisis. One way they're doing that is by easing some important tax deadlines.
For example, any person with a federal tax income payment or a Federal income tax return due April 15, 2020, who is affected by the COVID-19 emergency, will get an automatic postponement to July 15, 2020. They do not have to file any forms to qualify. The postponement includes an individual, a trust, estate, partnership, association, company, or corporation.
This relief is specific to the April 15th due date and is applicable only to income taxes (remaining 2019 taxes and 1st quarter 2020 estimates). Bridget Foreman, CPA and partner at Bartlett, Pringle & Wolf in Santa Barbara told NewsChannel 3 she does not have any information about other filings or payments due between April 15 and July 15.
"I would recommend that everyone stay in communication with their tax preparers as we anticipate getting more guidance regarding the federal relief. Specifics regarding how to extend federal returns beyond the new July 15th due date, plus filing dates for other non-April 15th returns have not been clarified yet. The extension of the filing and payment deadlines are extremely helpful in the present, however the payment extension could result in a cash crunch in July – as any remaining 2019 income tax, any 1st quarter 2020 tax estimates, and possibly any 2nd quarter 2020 tax estimates will all be due at once," said Foreman.
"Finally, there is a stimulus package in the Senate currently which also has tax law changes incorporated into it. Larger taxpayers, as well as others, may want to take advantage of the extended deadlines to see how this legislation, once passed, will affect their returns," added Foreman.
More bad news for the economy in the coming days and weeks could force officials to take even more drastic measures.
