Coronavirus pandemic has panic-stricken the whole world. It has a deep impact on small businesses. Keeping these issues in mind, the federal government of the USA has extended the tax deadline for all. Several tax services Los Angeles mentioned that the decision comes as a sign of relief for several business owners and individuals. The government has not only extended the deadline but also amended a few tax laws.
15th July 2020 is the new deadline for the due date for taxes. However, do you know that an extension up to 15th October can be requested in some cases? Individuals can pay their tax up to this new extended deadline without any penalties.
People have different questions in their minds regarding this extended deadline. It includes the questions regarding eligibility, amount, refund, and more. The current post will answer ten such questions regarding the new extended tax deadline.
1. Did I miss the usual tax deadline?
Fortunately, No. The IRS authorities extended the tax return deadline till 15th July 2020. The extended date is for not only filing the return but also for paying any previous tax owed. If you will pay the tax within this deadline, you don’t have to pay any penalties or any extra charges. So, still, you have a month left to pay the owed tax.
2. Am I eligible to get the deferral?
As per the regulation, all the taxpayers can take advantage of the deferral. However, remember that this extension is a temporary extension. Individuals filling the Form 1040, Corporates filling the Form 1120, Trust and States filling Form 1041 all can take advantage of the deferral. Apart from these the fiscal year partnerships, different associations and companies can also extend the tax deadline till 15th July 2020.
3. What needs to be done to get the extension?
You don’t have to do anything, as the given extension is for everyone. The whole country has been affected by the coronavirus. A tax accountant Los Angeles mentioned that this tax relief provides oxygen mostly to the small business owners.
4. Will I get a refund?
Often the clients ask this what will happen to their refund. You can be assured that you will get a refund within the 21days window. Treasury Department has ensured that people who will pay the tax within the deadline will get their refund within the speculated time.
5. Can’t I file the tax before July 15, 2020?
A CPA Los Angeles mentioned that several clients are there who are already prepared for filing the tax. So, for them, it is not mandatory to wait until the 15th of July. They can pay the tax earlier. Remember that unless you are paying the owed tax, you will not be eligible to get a refund from IRS. The sooner you will file, the IRS will refund you. If you are falling short of cash, quick payment can resolve the cash issue.
6. What if I didn’t make enough money in 2018 and 2019?
IRS will scrutinize the 2019 Social Security statements which you employ will provide or the 2019 Social Security benefits provided by you to determine that are you eligible for the stimulus pay or not. However, even none of the above is applied to you, still, tax services Los Angeles recommend you to file a basic 2019 return for income. It will pass the message to IRS that you are not hiding any information. You can contact us also for the same to determine your eligibility for the tax.
7. Do I have to pay extra tax on the stimulus pay?
Fortunately, No. You don’t have to pay any tax on the individual stimulus payments. Further, you don’t have to pay any Social Security or Medicare tax on it.
8. What payments are covered in the extended deadline
It is a common query of the several taxpayers that what kind of payments the extended deadline cover. For them, here is the list. The extension covers all the normal associated interest, penalties (in case of failure to pay), and the income tax returns.
9. What about the state taxes?
Coming to the state taxes, these are solely guided by the state guidelines. Please refer to the guidelines of the state where you are working or staying. To know more about the state provided guidelines, please feel free to contact our tax accountant.
10. What is the best way to file tax?
If you are comfortable, then the online option of the IRS is perfect for you. However, remember that a simple mistake can cost you a lot. It is better to take the help of a tax accountant Los Angeles to file your tax. However, for the basic, you can surely go for the online option. Some tax preparation software is also available, but it is better to taketh help of a professional.
How can we help you?
Over here in we have tried to answer some of the common queries that people have in their minds regarding extended tax deadlines. We know well that you may have still some doubts.
Taxation sessions are vast, and every business has its issues. If you are looking for a custom solution, please feel free to contact us at Jarrar CPA Los Angeles. Our tea of experts will be happy to help you.
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