Accounting on Us
As the financial strain on the economy is becoming more and more apparent during this outbreak (do yourself a favor and don’t look at your 401(k) today), Treasury Secretary Steve Mnuchin was called upon to help Americans who may have suffered financial hardship as a result of the COVID outbreak.
Tax deadlines for 2019 tax year
Relief in a trying time
Brock R. Yates, CPA, MT
These certainly are trying times. Much of America is either working from home, working in a diminished capacity, or finding themselves quarantined as we fight against the COVID-19 outbreak. If you’ll indulge me while I pull back the curtain, in January of 2020 I wrote an article explaining what would happen should you be late in filing your 2019 taxes – that article assumed, as it has nearly every year since the income tax was enacted, that tax day was April 15, 2020. We planned to publish that article in our April newsletter, however the landscape of America has changed quickly.
To that end, we wanted to update you on the latest regarding the tax filing and payment deadlines. Keep in mind that the situation is very fluid and changes seemingly daily, so keep your ear to the ground or contact your Henry+Horne adviser with any questions, and we will do our best to assist.
Tax Deadline Pushback
As the financial strain on the economy is becoming more and more apparent during this outbreak (do yourself a favor and don’t look at your 401(k) today), Treasury Secretary Steve Mnuchin was called upon to help Americans who may have suffered financial hardship as a result of the COVID outbreak. Initially, he declared that tax payments of up to $1M for individuals and $10M for corporations could be deferred until July 15, however there would be no change in the April 15 filing deadline. Just a few days later, though, at the president’s direction, he declared that all individuals and corporations would have their filing due dates pushed back from April 15, 2020 to July 15, 2020. This includes first quarter estimated taxes, which are historically due April 15 as well. However, as of the writing of this article, there has been no adjustment in the second quarter estimated tax payment, which is usually due June 15. So, barring any further action from the Treasury, at this point you will be paying your second quarter estimated taxes on June 15 and your first quarter estimated taxes on July 15, along with any federal tax owed on your 2019 income tax return.
What about the States?
On Friday, March 20, Governor Doug Ducey mandated that Arizona would follow the federal treatment of income tax filing and payment deadlines – so you have until July 15, 2020 to file and pay your Arizona income taxes owed for 2019. At first glance, it appeared this would also be true of estimated payments, however a closer look at the rules shows there is no mention of estimated payments. As of this writing, the Arizona estimated tax payment deadlines have not been altered, so Quarter 1 is still due April 15, but please stay tuned for further updates. Other states are passing their own deadline pushbacks one at a time. As mentioned, this is a very fluid situation, so be sure to contact your Henry+Horne adviser to see if a certain state has maintained or pushed back their filing deadline.
What is Henry+Horne Doing?
We hope you and your family are remaining safe during this trying time. As of this writing, Henry+Horne has closed our office to clients to maintain the health and safety of our clients and employees. Note that we are still working hard (from home, for most of us) to make this a successful tax season amidst this chaos. If you would like to drop off your tax documents at one of our locations, please contact the front desk via phone and they will assist you. You may also mail them or submit them electronically. Contact your Henry+Horne professional to discuss options to get us your information.
We still recommend you send us your tax information as soon as possible so we can continue working through the returns – if you have a refund, you will want to file as soon as possible to receive that money, and even if you owe tax, you can file now and pay the tax on the due date prescribed by that jurisdiction. The first two quarters of estimated taxes are due June 15th and July 15th. We would like to get your information as soon as possible to help you manage your cash flow as best as possible, so don’t delay in sending us your documents.
Additionally, we are tuning in daily for updates regarding tax deadlines and potential legislation to help businesses and individuals make it through this crisis. We can and will get through this together, and we strive to give you the updates you need as soon as they come out.
Stay safe and healthy!
Brock R. Yates, CPA, MT, Manager, specializes in the preparation and review of tax returns for businesses and individuals. You can reach him at BrockY@hhcpa.com or (480) 483-1170.