As you (hopefully) know by now, the IRS extended tax filing deadlines from the traditional April 15 as a response to the Covid-19 pandemic.
With most states under some form of stay-at-home orders, the federal government deemed it would be too difficult and too risky for most consumers to get to their local tax advisor, and the IRS was struggling to adjust like everyone else.
The IRS quickly extended its deadline for personal tax filing from April 15 to July 15, 2020.
So, you have plenty of time and there’s no rush at all to file, right?
Wrong! I estimate that most people are actually getting way too lackadaisical when it comes to their taxes, lulled into a false sense of security because July seems so far away.
But we’re only talking about less than two months now to file, and many consumers will actually miss that date or scramble to get their documents ready and file on time. That could potentially cost them a whole lot of money in errors, inability to get last-minute appointments with tax preparers, and even audits resulting from errors.
I encourage you to prepare your documents and file NOW so that won’t happen!
Remember that just because the IRS deadline for filing is extended to July 15, it doesn’t mean you have to wait that long. (Use this link to access a downloadable checklist that will help with your document gathering process).
You’ll also have some unprecedented challenges and additional procedural delays with filing this year, such as:
- A significant backlog at the IRS
- A slowdown in IRS efficiency and processing
- The public’s confusion around the new CARES Act, dates, and calculations
- Everything will take longer from a tax preparation standpoint, including setting appointments, submitting documents, signing documents and filing your returns with the IRS because of social distancing and safety measures.
Additionally, the earlier the file, the more time we have to strategize and file your return correctly, maximizing your tax savings and reducing your liability. (You also will get your IRS tax refund earlier the sooner you file, assuming you’re due a refund.)
And while personal tax filings are extended to July 15, remember that some deadlines for corporate filings are even earlier, like estimated tax payments (Form 1040), 1065 Partnership tax returns and 1120-S S-Corporation tax returns that are due June 15 this year.
So, I highly recommend you set an appointment with my office TODAY so we can get you on the calendar well before July 15th or even June 15, making sure your taxes are done right and you don’t overpay!