Tax News

Update: Extended Filing Dates

March 23, 2020 – The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest. This deferment generally applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.

Based on these changes, we would like to make you aware of how BFJ Financial Group is responding:

  • We have suspended Saturday work.
  • We have shifted priorities to better serve our clients. Identified below in order of highest priority:
  • Clients that require tax returns and/or financial statements for regulatory, financing, or other third parties.
  • Clients that will receive tax refunds.
  • Clients who owe money or have no balance due.

Not all states have extended their filing and payment deadlines to align with the IRS. We are closely monitoring each state our clients have a filing requirement in to ensure we meet their obligations.

We also want to be available to help business clients that are facing questions about how to handle employee continuation, including whether they will need to continue paying employees and how they might obtain financing.

BFJ Financial Group will continue to keep you updated as Federal and State responses change.  Please do not hesitate to call with any questions or concerns you may have.

March 20, 2020 – The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.

Maryland:

The Maryland Comptroller’s Office also will offer a 90-day extension of income tax filings & payments from April 15 to July 15, 2020. Comptroller Franchot said both Maryland individual and corporate income taxpayers will be afforded the same relief for state income tax payments. No interest or penalty for late payments will be imposed if 2019 tax payments are made by July 15, 2020.

Fiscal and calendar year filers with tax years ending January 1, 2020 through March 31, 2020 are also eligible for the July 15, 2020 payment extension. The due date for March quarterly estimated payments is extended to July 15, 2020.

Maryland Comptroller Peter Franchot has announced that Maryland business and individual income taxpayers will be afforded the same relief. No interest or penalty for late payments will be imposed if 2019 tax payments are made by July 15, 2020.

Virginia:

The Governor has requested that the Department of Taxation  extend the due date of payment of Virginia individual and corporate income taxes. While filing deadlines remain the same, the due date for individual and corporate income tax will now be June 1, 2020. Please note that interest will still accrue, so taxpayers who are able to pay by the original deadlines should do so.

March 19, 2020 – We at BFJ Financial Group, would like to clarify what has been circulating around in the news recently regarding annual tax payments and due dates.

Following President Trump’s declaration of a national emergency, Treasury Secretary Steven Mnuchin stated at a press conference on March 17, 2020 that individuals can defer tax payments up to $1 million for 90 days. Corporations can defer up to $10 million of tax payments for 90 days.

The $1 million limit for individuals was established to cover small businesses and pass-through entities.

“We encourage those Americans who can file their taxes to continue to file their taxes [by] April 15,” Mnuchin said, especially encouraging people who will be getting tax refunds to do so. “Just file your taxes,” and “you will automatically not get charged interest and penalties” on payments made within the 90-day deferral period.

BFJ Financial Group Observations:

Mnuchin’s statement did not extend the tax filing due date. For individuals the filing date, generally, is April 15 but they can get an automatic extension to file until October 15. We plan to complete individual income tax returns by April 15th or file extensions if necessary. Corporation income tax returns that are due April 15th will also be completed or extended.

The good news is that if taxes are due with your tax returns, you will have until July 15th to pay without penalty.

Many details remain unclear with respect to this relief, and no official written guidance has been released at this time. Please contact us should you have any questions and we will continue to monitor the situation and keep you informed with any other updates moving forward.

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