As a reminder because of the economic impact of COVID-19, the federal income tax filing deadline has been extended to July 15, 2020. These new deadlines apply to all individual tax returns, trusts, and corporations. Estimated payments for federal returns have also been extended to July 15, 2020, which means that penalties and interest will not start accruing until July 16, 2020.
Even though the IRS decided to extend estimated payments to July 15, all states could decide whether or not to follow suit. Each state has different deadline. As for Arizona, the deadline for tax year 2020 first quarter estimated tax payments remains April 15, 2020 and second quarter remains June 15, 2020. It is important to research your state to know the different deadlines they have put in place in order to not miss a payment.
When it was announced that the deadline was going to be extended, we were right in the heat of busy season with the end in sight. There were a lot of questions on whether our busy season hours were going to be extended as well. The partners of our firm decided that implementing an internal deadline of May 15th would be valuable. This way, we would not be working busy season hours through the summer. It gave a sense of relief in the firm because working extra tax season hours would be a challenge with no end in sight. Now that May 15th has passed, we are working normal hours while maintaining a diligent mindset to finish as much work as we can throughout the next months. If you have any questions about the new tax deadlines, please reach out to your Henry & Horne advisor.