Tax Deadline Approaching! - PrairieView Partners

As has been well publicized, the IRS moved the tax deadline for individual taxpayers from April 15^th to July 15^th in response to the COVID-19 pandemic.  

If you haven’t filed your 2019 tax return (and don’t have an extension), be sure to file by July 15^th!

As a reminder, here’s what this means…

New “tax day”

Both the tax filing date and tax payment date are now July 15^th. 

It is automatic

The relief applies automatically.  No new tax form must be filed.

If you owe tax

If you have a tax balance due with your federal tax return, it was not necessary to make the payment on April 15^th.  Instead, you could delay payment until July 15^th. 

Note that most tax software programs did not update their software by April 15^th to print the extended dates on the filing instructions and transmittal letter generated by CPAs and other tax professionals.

Quarterly Estimates

Your first quarter federal estimated tax payment could also be delayed until July 15^th.  In addition, the IRS clarified that second quarter estimated tax payments may also be paid on July 15^th instead of June 15^th.    

Minnesota and other states

Minnesota and many other states have provided similar relief.   Taxpayers owing Minnesota tax could delay payment until July 15^th consistent with the federal directive. 

Minnesota, however, did not extend the due date for quarterly estimated tax payments.  They were still due on April 15^th and June 15^th.  

Provisions for other states are updated on the website for each state’s tax department.  The American Institute of CPAs (AICPA) has a comprehensive (several hundred page) chart on its website showing every state’s actions in response to COVID-19.

IRAs and HSAs, etc.

The IRS clarified that taxpayers have until July 15^th to make 2019 contributions to regular or Roth IRAs, SEP-IRAs or other retirement plans, or to Health Savings Accounts. 

However, unless there are cash flow concerns, we suggest making these contributions as soon as possible since there are no tax or investment advantages to delaying and to insure that the contribution is properly coded as for 2019 (and not 2020).

As always, please let us know if you have any questions or concerns. Be well.