By now, you’re probably aware of the extension of the tax filing deadline to July 15, 2020. It’s big news these days since it’s something the IRS has never done before. Let’s be clear about one thing here before we go any further. This isn’t the same kind of filing extension you’d use if you needed extra time to get your taxes done. This extension is automatic and applies to everyone. You do not need to do anything to qualify for it or take advantage of it.
Implications for Estimated Taxes
For those of you who are breathing a sigh of relief, don’t be too hasty. If you make estimated tax payments throughout the year, this deadline extension will have interesting ramifications for you.
Typically your first-quarter estimated tax payment is due on April 15. Now, because of the filing extension, it will be due July 15. However, your second-quarter estimated tax payment is still June 15, meaning your “second” payment is due before the first one is. None of the other deadlines for estimated tax payments have been extended.
This presents a couple of issues.
- Those who want to take advantage of the July 15 date extension and have estimated tax payments automatically withdrawn from their bank account on a specific date, will need to go in and manually change that payment date.
- For those who have an overpayment for the first quarter and are used to seeing the credit on the second payment, the timeline will be out of order. The overpayment may need to be reconciled on the first quarter payment that’s due July 15 or even on the third-quarter payment that’s due October 15.
This is going to get a little confusing. Working with an experienced accounting firm is one of the best ways to keep all this straight.
Can You Still File Taxes by April 15?
For those who are wondering, the answer is yes. You can still pay your taxes by April 15 and be done with the process. In fact, it’s a really good idea to do that because the chances are good that the IRS will be overburdened with tax returns coming in on July 15. There’s no reason to wait until that date to file if you have your documents in order.
If you’re expecting a refund, it’s especially important that you go ahead and file by April 15. You’ll get your refund much faster. And why would you want to wait any longer for that than necessary?
Adams Accounting Solutions is Still Here to Help
Here at Adams Accounting Solutions, we’re still open for business and are taking all the necessary precautions to keep our clients and ourselves safe and healthy. If you have questions about estimated tax payments, the tax filing deadline, or anything else tax-related, give us a call at 913-888-9100. We’ll answer your questions and help you sort out the confusion.
