You may be reading a lot in the media about tax changes, but there is a lot of misinformation out there, so I wanted to give you an update:

Filing Delay. You have until July 15, 2020 to file your Form 1040 or Form 1120 for C corporations. You can request an additional extension before July 15, 2020 until October 15, 2020. If you have to report foreign assets or income, we still need to file or extend by April 15, 2020. IRA contributions for 2019 are still due by April 15, 2020.

I strongly recommend preparing the return before April 15, 2020. This allows you to get your refund as well as do 2020 estimated tax payment planning.

If you submitted your information, we are currently working on it – thank you! If you have not submitted your information, please do so ASAP.  There is no need to wait until your “appointment date” to mail in, drop off, or upload.

Arizona Tax Credits.  Arizona tax credits to Qualifying Charitable Organizations, Qualifying Foster Care Organizations, School Tuition Organizations and Public School Extracurricular Activities funds are still due on April 15.  Information (though slightly dated) is available by clicking here.

Payment Delay. Your 2019 Form 1040 balance due is due July 15, 2020. Your 2020 1st quarter estimated tax payment is due July 15, 2020. Your 2nd quarter estimated tax payment is due June 15, 2020. Yes — your 2nd quarter payment is due before your 1st quarter payment.

If these payments are already scheduled for auto-debit, you can cancel the payment: call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.

Tax Credits. The government is providing payroll tax credits to offset mandatory paid sick & family leave for 2020. Self-employed people get a tax credit if sick and unable to work. Individuals with COVID-19 can get higher tax credits. If you get sick and want to claim this tax credit, get some type of documentation regarding your illness. We have no guidance yet on required documentation.

Proposals. There is a pending Senate bill with a slew of tax provisions, including an advance tax credit payment similar to what happened in 2008. These items are not law. It is uncertain what will be passed. More information to come.

Hours of Operation:  Given that the tax deadline has been moved, there is no reason for our office to maintain the harried hours of a standard tax season.  Extended hours (Sunday through Friday from 8:30 – 6:30 pm) will continue through April 6 to allow us to complete tax returns currently in process.  Standard hours (Monday through Friday 8:30 – 5:00) will commence on Monday, April 6.  Appointments outside of these hours will be available upon request.

If you have questions, please let me know. Stay safe!

Aaron Blau, EA, CPA and the Team at The Blau Company, Ltd.