A Brief Guide to the Tax Filing Extension
With COVID-19 spreading globally, businesses temporarily closing, and major metro areas on lockdown, tax preparation is probably the last thing on your mind. Luckily for millions of American taxpayers, the IRS has extended this year’s filing deadline, which gives you more time to get your returns in order and pay your bill.
The Tax Filing Extension
On March 21, the IRS released new guidance extending the tax filing and payment deadline from April 15 to July 15, 2020. This extension automatically applies to all taxpayers, including trusts and small business owners. No application is necessary, so you don’t have to rush to file for an extension before the usual tax filing deadline.
Extensions for Contractors & Business Owners
The temporary relief includes not only filing the returns, but also paying any taxes you owe. In addition to income taxes for 2019, business owners and independent contractors will also have until July 15 to make any estimated tax payments that would have been due next month. However, if possible, you should still keep that money set aside to avoid incurring fines and penalties later.
Filing Before the Deadline
While you can wait until July 15 to file, it may be in your interest to take care of tax preparation now. For instance, if you’re expecting a refund, filing sooner is always better than waiting. That refund might give you the resources you need to weather this crisis, while also getting a stressful project off your plate.
The tax code is always changing, especially in these uncertain times. Whether you’re a small business owner or an individual confused about tax preparation rules, ZP Tax, Inc. in Silver Spring, MD, is here to provide guidance and lightning-fast services based on all the most recent developments and updates. Visit their website for more on their tax preparation services, or call (301) 587-4829 to speak to an advisor today.