Individuals and business owners facing a sea of challenges responding to the COVID-19 pandemic, received some welcome relief from the IRS in the form of a federal income tax filing and payment extension.
On March 21, the IRS delayed the 2019 federal income tax filing and payment deadlines to July 15, 2020. This move gives individual taxpayers (including the self-employed), trusts and estates, C corporations, partnerships, limited liability companies and other non-corporate taxpayers an additional 90 days to prepare documents, meet with their advisors and file and pay their tax liabilities for 2019. The IRS also extends this relief to taxpayers with federal gift tax or generation-skipping transfer tax filing and/or payment requirements that would otherwise be due on April 15.
If you expect to receive a tax refund from the IRS, accounting professionals advise you file as early as possible to expedite receipt of the money due to them. If you expect to owe money to the federal government, you may use the extra time to your advantage and enjoy the benefit of an interest-free 90-day loan from the IRS. However, it is recommended that you take the time to determine if tax filing and payment relief is available to you on the state and local levels. Many states have already postponed their income tax filing and payment deadlines to meet the July 15 federal deadlines. However, not all states or state-level tax liabilities have implemented extensions.
Government response to the COVID-19 pandemic is a rapidly changing situation for which we will keep you updated as the various proposals and provisions of relief are signed into law. If you need any guidance, please don’t hesitate to contact us.
About the Author: Robert Mark Weiss, CFA, is a regional director and financial planner with Provenance Wealth Advisors, an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs, and a registered representative with Raymond James Financial Services. For more information, call (941) 308-1126 or email firstname.lastname@example.org.
Provenance Wealth Advisors (PWA), 515 E. Las Olas Blvd., Ft. Lauderdale, FL 33301 (954) 712-8888.
Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Raymond James is not affiliated with and does not endorse the opinions or services of Berkowitz Pollack Brant Advisors + CPAs. PWA is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory and Financial Planning Services are offered through Raymond James Financial Services Advisors, Inc., and Provenance Wealth Advisors, a Registered Investment Advisor.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the advisors of PWA and not necessarily those of Raymond James. The information contained in this report does not purport to be a complete description of the developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Investments mentioned may not be suitable for all investors.
You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Please note that changes in tax laws may occur at any time and may have a substantial impact on each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters.