IRS Extends Tax Filing Deadline to July 15…
CRAMER: SUSPEND TAX COLLECTION!
RUSH FOR CASH RATTLES MARKETS
TAX DAY/CORONAVIRUS ANALYST: Mike Savage, is a CPA and CEO of 1-800Accountant, one of the premier virtual accounting firms in the U.S. trusted by over 200,000 small and medium-sized businesses across the country.
IRS orders office evacuation, affecting most agency employees…
Treasury Secretary Steven Mnuchin pushed back the deadline for 2019 taxes to July 15th from April 15th. How will this help small businesses across the nation reeling from the COVID-19 pandemic? If you can, should you wait to file taxes until July 15th? Is the IRS clear about what the new rules are?
National virtual accounting firm 1-800Accountant is offering free assistance, tax preparations, and consultation to small businesses, freelancers, gig workers, and independent contractors who have been impacted by the coronavirus.
The U.S. government will postpone the April 15 tax-payment deadline for millions of individuals, giving Americans another 90 days to pay their 2019 income-tax bills in an unprecedented move.
Secretary Mnuchin Stated
(1) Individuals can defer up to $1 million in tax payments to the IRS for 90 days
(2) The $1 million threshold takes into account pass-through businesses that pay taxes through the individual code on their owners’ return
(3) Corporations can defer up to $10 million in tax payments
(4) Deferrals will be interest-free and penalty-free
Mike’s Thoughts
(1) The announcement is a relief for many small business owners. For Federal purposes, it will allow taxpayers to file on July 15th instead.
(2) However bear in mind, tax professionals and taxpayers are waiting for the states to react now, as the states have their own separate deadlines, and a lot of the states have not come to a decision yet for their filings. Many states may match the Federal deadline, but ultimately we will have to wait for the guidelines from each state.
(3) It may still be a good idea to file earlier if the taxpayers anticipate a refund, so they can get their refund sooner.
(4) Keep in mind, the Treasury Secretary referenced the April 15th deadline. However, for Partnerships and S Corporations, the deadline was March 16th. We have not received any guidelines of whether the administration will offer any sweeping abatements/amnesty for those who missed the deadline as yet.
(5) In the next few days, we can anticipate receiving a lot more clarity and guidelines from the IRS and the states.
1-800Accountant will prepare taxes for free for very small businesses, like independent contractors, gig economy workers, and sole proprietors and will provide a free tax analysis for any business in the country, like restaurant and bar owners who have been affected by Coronavirus, to determine if they meet the new IRS threshold’s announced by Secretary Mnuchin earlier this week. The company will also answer general questions about how the IRS changes affect them.
CEO of 1-800Accountant and CPA Mike Savage said, “There will be significant government-sponsored stimulus in the days and weeks ahead. Most of that stimulus will be delivered through the tax code. We are here to help.”
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