Current Tax Developments
March 25, 2020 —Below are the current tax developments we want to share with you. We will continue to monitor this ever-changing situation and keep you apprised. You can access all of the previous updates we have sent you by following this link https://bgm-cpa.com/news-insights/category/covid-19-updates/. Please also follow us on Facebook and Linked In. If you have any questions, please reach out to your BGM professional for assistance and guidance.
Forms Covered by the Federal Income Tax Returns Postponement
The form numbers of the specific Federal income tax returns whose filing deadlines have been postponed, from April 15, 2020 to July 15, 2020 includes:
- Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS
- Form 1041, 1041-N, 1041-QFT
- Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF
- Form 8960
- Form 8991
With respect to Form 990-T, if that Form is due to be filed on April 15, 2020 then it has been postponed to July 15, 2020. For taxpayers whose Form 990-T is due on May 15, 2020 that due date has not been postponed.
With respect to returns due on March 16, 2020, which include Form 1065, Form 1065-B, Form 1066, and Form 1120-S for calendar year taxpayers, the filing of those returns has not been postponed.
Obtaining a Full Six-Month Extension to File Individual Federal Income Tax Returns
If you are an individual, and you are unable to file your 2019 Federal income tax return that would have been due on April 15, 2020 by new deadline of July 15, 2020, you can request an extension if you will not be able to file by the July 15, 2020 deadline. The easiest and fastest way to request a filing extension is to electronically file Form 4868 through your tax professional, tax software, or using the Free File link on IRS.gov. Businesses, including trusts, must file Form 7004. You must request the automatic extension by July 15, 2020. If you properly estimate your 2019 tax liability using the information available to you and file an extension form by July 15, 2020, your tax return will be due on October 15, 2020. To avoid interest and penalties when filing your tax return after July 15, 2020, pay the tax you estimate as due with your extension request.
Automatic Withdrawals Already Scheduled for April 15, 2020
Taxpayers who have already filed their return and have scheduled a payment to be made on April 15, 2020 will have to take specific actions to delay that payment. While the payment can be delayed, the IRS will not be automatically making that change. If you do nothing, the payment will be made on the date you chose. To cancel and reschedule your payment these are the steps to take:
- If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the “Look Up a Payment” feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number. Direct Pay is available Monday to Saturday: Midnight to 11:45 p.m. ET and Sunday: 7 a.m. to 11:45 p.m. ET. Taxpayers in Minnesota can call the Minnesota Department of Revenue at 651-556-3000 or 800-657-3666 to cancel the authorization and then send a check by July 15, 2020. Office hours are Monday to Friday: 8 a.m. to 4:30 p.m.
- If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on “Payments” from the EFTPS home page, login, then click “Cancel a Tax Payment” from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
- If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
- If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment.
The IRS has pushed back the date for making contributions to IRAs and employer retirement plans. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, 2020, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.
The IRS has also pushed back the date to make contributions to HSAs. Contributions may be made to your HSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA for 2019 at any time up to July 15, 2020.
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