1040

As the end of 2019 approaches, more and more information and guidance is released by the IRS relating to the Tax Cuts and Jobs Act, as well as guidance relating to a number of different areas not impacted by the landmark tax reform act. While one of the claimed benefits of tax reform was the simplification of filing and the lowering of income tax rates, there are still many steps that individuals can take that can lower their tax bills. Planning during the final weeks and months of this year involves much more–both in terms of traditional year-end strategies and strategies developed in response to developments that have taken place over the last couple of years. Here are some points to consider:

Deadline for filling personal tax return, or an extension must be filed.

Should the date fall on a weekend or holiday, it extends to the next workday.

Taxpayers who do not pay at least 90 percent of their tax through withholding generally are required to estimate their income tax liability and make quarterly payments of that liability during the year on the 15th day of the 4th, 6th, 9th and 12th months of their tax year. This applies to some Corporations and certain exempt organizations as well. Note, that if this date falls on a weekend or a holiday, the deadline will be the next business day.

As part of Coronavirus relief, President Donald Trump announced a 90-day extension for Individuals and Corporations to pay certain tax payments. Critically: at this time, it may be that this is only an extension to pay, and not an extension to file. There is much that is unknown, and we are seeking guidance from the IRS. However, it was announced that the IRS will not invoke penalties and interest on tax payments under $1 million for individuals and $10 million for corporations.

It is our recommendation that taxpayers make their best efforts to get us relevant 2019 tax year information as soon as possible.

At @realDonaldTrump<’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.

— Steven Mnuchin (@stevenmnuchin1<)

As stated before, we are strongly encouraging clients, who have the ability, to send their tax information. Many state returns will not match the extended federal due date.