With the current COVID-19 pandemic, many of us are finding ourselves doing more virtually. From meetings to happy hours, we are doing more online – including our taxes. In a period of time where most Americans are usually concerned about tax filing, there are now new accommodations as a result of the pandemic. Hylen recognizes that not all citizens may be aware of recent modifications and new accommodations, so we have created this guide to help inform you ahead of 2019 tax filing.
In response to the additional pressure that the coronavirus has placed on our economy, the IRS granted a three-month extension on the tax filing deadline. The deadline has moved from April 15th to July 15. Taxpayers do not have to worry about requesting an extension. All are exempt to file their taxes before the July 15th date. The following variety of filers are all granted the extension:
- Individual Form 1040 filers
- Corporations Filing Form 1120
- Trusts and Estates Filing Form 1041
- Fiscal year partnerships, associations, and companies
The Department of the Treasury (USDT) has also advised its employees to temporarily accept digital signature scans as well as to use secured communication systems in order to relay important tax documents. The issue that derives from sharing data digitally between yourself and the IRS is that you can potentially become vulnerable to identity theft. That is why taking precautions such as using a CPA and asking them about their security is vital to protecting your data during this time.
Although this extension is convenient and has advantages of its own, there are benefits to getting your tax filings done early. In this time of turmoil, the IRS is planning to distribute refunds to taxpayers as scheduled and they have advised early filing for an early refund. Just last year, 72% of taxpayers received a tax refund of at least $3,000. Once a tax file is received, the IRS will send a direct deposit within 14-21 days, thus providing critical money for taxpayers during this coronavirus pandemic.
Furthermore, small businesses around the nation have been impacted by the COVID-19 pandemic, resulting in Congress taking action and passing the Corona Aid Relief Economic Security (CARES) Act. This relief package was created to support the millions of small business owners and employees through the damage the economy is sustaining from the coronavirus pandemic. Under sections 2301 and 2302, of the CARES act, employers will receive a refundable payroll tax credit against losses they suffered in prior years. Additionally, the act allows employers to defer its portion of employment taxes. Other benefits exist under these sections, for consultation contact an experienced CPA at Hylen. We can help.