13 Apr 2020 Coronavirus and Taxes: Frequently Asked Questions (FAQ)
The COVID-19 outbreak is affecting every facet of our lives – including our taxes. Check here for all your tax related FAQ to see how you may be impacted.
Q1: Since the deadline for filing and paying my taxes is now July 15th, is there any reason to have my taxes prepared now?
A1: Yes, there are several reasons.
- if you have a refund coming, the IRS has encouraged you to file ASAP. The refund money may help you through this crisis. Remember, it may take up to 21 days for your refund to arrive.
- The stimulus payments of $1,200 per taxpayer and $500 per child under age 17 will be based on your 2018 tax return if you have not already filed your 2019 tax return. They will also be direct deposited to your bank account as shown on the last tax return filed. If you have had a child added to your family in 2019 you will want to get your 2019 return filed very quickly as the refunds are slated to start approximately April 20th. Also, if your income was over $75,000 for Single Filers, or $150,000 for Married Filing Joint Filers for 2018, but under these amounts for 2019 you will want to file your tax returns immediately to increase your stimulus amount.
- If your bank account used on the 2018 tax return for direct deposit has changed, or if you owed tax on your 2018 tax return and therefore did not have a bank account entered for direct deposit, you will want to give the IRS your current bank information immediately. You can do this by filing your 2019 taxes now if you have a refund, or enter your information here.
- Your tax preparer will greatly appreciate you sending your tax data to us because your tax returns can be e-filed now. The tax payment does not need to me postmarked until July 15th. We are accustomed to meeting the April 15th deadline and we would like to avoid a mid-summer tax crunch. May and June are traditionally slow months for tax preparation, so if you decide to wait, please take advantage of May and June and do not wait until July!
Q2: Does the relief apply to state tax liabilities?
A2: State filing and payment deadlines vary and are not always the same as the Federal filing and payment deadline. We urge you to check with your state tax agencies for those details. More information is available at https://www.taxadmin.org/state-tax-agencies.
Q3: When are my 2020 Estimated Income Tax Payments due?
A3: First quarter and second quarter 2020 estimated federal income tax payments are both postponed to July 15, 2020.
Q4: Is April 15 still the last day I can make an IRA contribution for 2019?
A4: No, the last date to make an IRA contribution is the same as the tax return filing due date so you now have until July 15, 2020 to make the contribution.
Q5: Does this relief provide me more time to contribute to my Health Savings Accounts for 2019?
A5: Yes. You may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020. Learn more about HSA changes
Q6: Are Corporation taxes affected by the extended filing due date?
A6: Yes, the filing due date for calendar year C-corporations has also been extended to July 15, 2020. As a result of extending the filing due date, the payment of taxes and filing of estimated taxes has also been extended.
Q7: If I can’t file my return by July 15, what can I do?
A7: You can file an extension which gives you until October 15, 2020 to file your return.
Q8: What about relief for other types of tax filings?
A8: The IRS has not provided a payment extension for the payment or deposit of any other type of federal tax (including payroll taxes and excise taxes) or for the filing of any tax return or information return.
Q9: Is there any tax relief for other types of tax filings that are late?
A9: Yes, taxpayers may seek relief under certain provisions of the tax code that allow the IRS to waive penalties by reason of casualty, disaster, or other unusual circumstances, the imposition of such addition to tax would be against equity and good conscience.
Q10: What should I do if I usually have an appointment with my tax preparer?
A10: We are now handling appointments remotely by phone, email and documents exchanged digitally by secure means. You should contact your Haynie & Company CPA for details.
Q11: How should I send my documents to my CPA?
A11: We recommend using ShareFile to securely share and receive documents electronically. Additionally, you may mail or scan, using numerous scanning apps available from your smartphone.
Q12: How can I visit with my CPA if they are not in the office?
A12: We have technology in place that allows us to be available to best serve you during this time. We have phone, video conferencing such as Zoom, Facetime and other programs. Plan to communicate with us over phone or email to schedule a meeting. We will receive all voicemails left on our office extensions.
Q13: How will I sign and return my e-file authorization form(s)?
A13: Haynie & Company will send your e-file authorization forms electronically via RightSignature or DocuSign. Please don’t hesitate to reach out to your local office if you have any problems navigating these programs.
Q14: What about businesses or other entities that have filing due dates on May 15, June 15, or some other date besides April 15. Have their filing and payment deadlines been postponed?
A14: No, any taxpayers who have filing or payment due dates other than April 15 have not been granted relief at this time.
Q15: Does the relief apply to gift taxes?
A15: Yes, Gift Tax Returns (Form 709) also get automatic relief until 7/15.
Q16: Where can I find out more details about Coronavirus Tax Relief?
A16: Call your Haynie & Company CPA or visit any of the following resource pages listed here: