Dear Valued Clients and Friends,
The Treasury Secretary has extended the federal income tax filing and payment deadline for individual and some corporate returns from normal tax deadline of April 15th, to July 15, 2020. It appears that MN and WI will follow suit with extending the state income tax deadline. We will send out another communication when the details of the Minnesota and Wisconsin filing/payment deadline are finalized.
If you have already scheduled your tax payments for April 15 via automatic withdrawal, you are still able to change the auto-withdrawal date to the new July 15th deadline by contacting the IRS.
- to cancel the automatic withdrawal, you will need to call the IRS e-file Payment Services 24/7 phone number: 1-888-353-4537.
- the IRS request taxpayers wait 7-10 after your return has been accepted to call.
We do recommend that if you have the funds available to make your final 2019 tax payments by April 15th, or shortly thereafter, then we recommend you do so as interest rates are currently very low and these funds would likely not be earning much otherwise.
In addition, if your 1st quarter 2020 tax payments have been calculated and you have the funds available to make these payments by April 15th, or shortly thereafter, we recommend you do so for the same reason. Otherwise, you technically are not required to make these federal payments until July 15th.
IMPORTANT NOTE FOR TAXPAYERS EXPECTING A TAX REFUND: According to the Washington Post “The Treasury Department … had been reluctant to postpone the deadline for filing as well, in part because doing so may result in fewer Americans getting their tax refunds at a weak moment for the American economy.” As such, we highly recommend that our clients who anticipate receiving a refund on their 2019 federal tax returns should file their returns as soon as possible to avoid potential delays in receiving their refund.
Your tax professionals at HW & Associates will continue to monitor the announcements from the federal and state authorities. In the meantime, we encourage you to continue to gather any necessary tax documents and move forward with your income tax preparation. Remember, even if you file your tax returns prior to the new deadline, you are not required to make any payments until the new July 15, 2020 deadline. If there are any additional developments, we will update in a follow-up communication.
Please don’t hesitate to email your HW & Associates tax professional with any questions.