When Are Taxes Due? | July 15th Deadline Remains in PlacePat Fontana
The only thing that seems constant these days is change. Plans are rescheduled. Due dates are pushed back. One major deadline that has been extended involves your taxes. With all the changes, you may be wondering, when are taxes due? At this time, the July 15th deadline remains in place. There are some who want that to change also, but right now your personal and business tax deadline is almost here.
By the Numbers
Although many people have already filed their tax returns, there has been a significant drop in the numbers compared to this time last year. People who are owed refunds are filing and the Internal Revenue Service (IRS) has issued 91.3 million refunds as of June 5, with the average refund being $2,769.
The number of tax returns that have been processed by the IRS as of June 12 is 12.2% less than the number processed at this time last year. The number of refunds issued has dropped by 11.8%. The IRS recently recalled its employees so they can start processing returns and answering taxpayer questions again.
According to the IRS, the 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on the taxes paid by July 15.
The first two quarterly payments deadlines have also been extended. First quarter 2020 estimated income tax payments due April 15, 2020, and second quarter 2020 estimated income tax payments due June 15, 2020, have both been postponed to July 15, 2020. You will make a single payment in an amount sufficient to cover both your first and second quarter estimated tax payments on or before July 15, 2020.
The IRS Notice 2020-23 does not address payroll tax deposits or payments, but Notice 2020-23 does provide postponement relief for filing a claim for credit or refund and bringing suit upon a claim for credit or refund for any tax, including payroll taxes. Information is available about additional relief that may be available to employers in connection with the Families First Coronavirus Response Act and the CARES Act legislation, including relief that allows employers to delay the deposit of certain employment taxes.
The Arizona Department of Revenue (ADOR) has announced it has moved the deadline for filing and paying state income taxes from April 15 to July 15, 2020, also. The extension includes individual, corporate, and fiduciary tax returns. The new deadline means taxpayers filing state tax returns or submitting payments after the previous April 15 deadline will not be assessed late filing or late payment penalties. Additionally, interest has been waived under this announcement.
Another Possible Extension
Many people have speculated that there may be another extension announced by the federal government. However, if you are asking yourself, “when are taxes due?” it is safest to understand that the July 15th deadline remains in place currently.
In an interview with Bloomberg News, Treasury Secretary Steven Mnuchin stated that he may consider a second extension for the tax filing deadline given the continuing issues caused by the coronavirus pandemic. Mnuchin said, “It’s something I’m thinking about. As of now I’m not intending on doing that, but it’s something we may consider.”
A number of interested groups, such as the National Taxpayers Union and the National Treasury Employees Union, have asked that the tax due date be extended again. Mnuchin has said that the first delay injected about $300 billion of liquidity in the economy. The Treasury Secretary has the ability to extend the due date administratively, meaning he wouldn’t need the approval of Congress to make the change.
CONTACT CLEAR VIEW BUSINESS SOLUTIONS FOR HELP WITH YOUR TAXES
At Clear View, we understand that deadlines and due dates can be difficult to follow, especially when they are subject to change. We are tax experts and are ready to help you manage your business finances appropriately throughout the COVID-19 pandemic. Learn more about how we can help you and your business by contacting Clear View Business Solutions to speak to our team about our services. Give us a call at (520) 544-0177.