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Treasury considering extending 4/15 tax deadline - coronavirus?


ILLMAS

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Looks like we may get some extra time to complete those returns:

https://www.wsj.com/articles/u-s-treasury-likely-to-push-back-april-15-tax-filing-deadline-sources-11583897351

WASHINGTON—The Trump administration is likely to extend the April 15 tax deadline as part of an effort to mitigate the effects of the novel coronavirus on U.S. households and businesses, according to an administration official and another person familiar with the matter.

Edited by jklcpa
merged into existing topic above
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This would be so sweet as I have already lost 10 days due to my own illness.  Now I am facing two funerals in the coming week.  My assistant is out today and also was ill in January when I wanted to complete preparations for the tax season which dropped like a bombshell the last week in January.  One way or another, we have to get it done.

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Copied from the Wall Street Journal:

"The Trump administration plans to delay the April 15 tax deadline for most individual taxpayers as well as small businesses as part of an effort to mitigate the effects of the spread of the novel coronavirus, Treasury Secretary Steven Mnuchin said Wednesday."

Looks like it going to happen

 

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The news I read they were talking about the 6 month extension, which is automatic anyway.  But there were thinking of extending the payment due past April 15th.

I don't know if I even care,  I am so burnt out by April 15th I don't think I would be working on taxes until May any way.

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Yes I believe it was announced before it was properly discussed. Doesn't Congress have to order it? The initial report I read was that they had to decide if everyone received a 3 or 6 month extension.

 

Everyone around here is in freakout mode with the markets dropping and businesses going into work from home mode. Feels like everyone is frantically trying to get their taxes done before they are put into quarantine! I really only have about 40  returns that still need to be brought into our offices. Another 20 that we are waiting on forms but we are likely 90% done.

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"On Wednesday, the American Institute of CPAs requested a delay in the tax deadline, along with other tax relief steps to provide relief to all taxpayers in the midst of the pandemic. The AICPA asked the Treasury and the IRS to extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020 to give individuals more time to file their taxes and make payments through Oct. 15, 2020.

The AICPA wants an automatic extension to Oct. 15, 2020, without the need for taxpayers to file any forms or request an extension. The Institute also asked the Treasury and the IRS to waive late payment penalties if at least 70 percent of an individual’s current tax due is paid by April 15, 2020, and to waive interest through Oct. 15, 2020. The AICPA also requested the Treasury and the IRS to waive underpayment penalties for 2020 estimated tax payments if they’re paid by Sept. 15, 2020, as well as to extend the IRA contribution deadline.

For businesses, the AICPA asked for broad tax relief, requesting the Treasury and the IRS to extend certain deadlines falling on or after March 15, 2020 and before Oct. 15, 2020, to give businesses extra time to file and make payments through Oct. 15, 2020. For businesses too, the AICPA asked for an automatic extension without the need to file any forms or request an extension, and for the Treasury and the IRS to waive late payment penalties and interest through Oct. 15, 2020. The AICPA also asked the Treasury and the IRS to provide appropriate relief for all businesses and tax-exempt organizations regarding elections and filings (including payroll, excise tax, and more."

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March 19, 2020—

 

Dear Mr. Secretary:

With regard to the release of Notice 2020-17, 'Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic', I am certain that by now your office has received thousands of letters, e-mails and phone calls from CPAs, EAs, attorneys and other tax return professionals. The action taken by the U.S. Department of the Treasury with respect to the preparation and filing of 2019 income tax returns, along with any payments that would be due with those returns in many cases, does not reflect the difficulties that have been imposed on both tax practitioners and their clients by the current crisis.

Businesses are being forced by State and Local Governments to significantly curtail or cease operations because of the pandemic.

Individuals are being forced to remain in their residencies, by their own choice or otherwise. Facilities for older individuals, including independent living and assisted living facilities as well as nursing homes, have closed themselves off entirely to the public. The only people allowed to go into these facilities are employees—even family members are not allowed to enter. These individuals, in particular, rely on a tax return professional to assist them with the preparation of their tax returns, and we do not have access to them or their information. You stated that their burden of paperwork would be alleviated by current technology; however, this is not entirely accurate for this segment of the population.

Approximately 60% of taxpayers engage a tax return professional to prepare their tax returns. We have just passed the March 15 deadline for Partnerships and S-Corporations. The April 15 deadline for Individual, Fiduciary, and Corporate returns is fast approaching. After that, Payroll tax reports are due on April 30. Then you have May 15 for Non-Profits. Again, depending on the situation and circumstances at that time, these also may be late in being submitted.

Action is needed IMMEDIATELY.

Some states have taken action to grant some relief with regard to filing and payments, but most rely on federal action first.

We propose the following:

Grant an automatic extension to October 15 for ALL tax returns that are due April 15. This would include the waiving of any penalties and interest charges that would be assessed to taxpayers. This waiver would also include 2020 tax return payments. Consideration for extensions should also be applied to Payroll reports and Non-Profit tax returns.

We are going through a difficult time right now, the likes that have not been seen since the Influenza Pandemic of 1919 & the Stock Market Crash of 1929, and we need the Federal Government to lead. The CPA profession, along with all of those who prepare tax returns, want the system to function well.

For that to happen, we not only need payment relief, but filing relief as well, and we need it now.

Neil H. Fishman, CPA, CFE, FCPA, CAMS

President, National Conference of CPA Practitioners

On behalf of the National Conference of CPA Practitioners

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