News & Resources
Tax Filing Deadline Extended to July 15, 2020
Update (Dated 03/23/2020):
Missouri Pushes Back Tax Filing Deadlines to July 15, 2020
Monday, March 23, 2 p.m. – The Missouri Department of Revenue announced on Saturday that it will push back the traditional April 15 tax filing and tax payment deadline to July 15, 2020, in accordance with a federal-level decision made last week by the United States Department of Treasury. This extension applies to 2019 individual, corporate, and trust income tax returns originally due April 15, as well as first quarter 2020 individual and corporate MO estimated tax payments originally due April 15. Additional information about the Missouri decision can be found here.
Because of the uncertainty surrounding the international COVID-19 crisis, WK strongly encourages its clients who are able to file their state and federal tax returns in accordance with the traditional April 15 deadline.
WK continues to evaluate whether or how other states will adjust their respective deadlines in accordance with the Treasury change. We will provide updates as soon as additional information is available.
Small Business Administration Offers Loan Relief
The United States Small Business Administration (SBA) on Saturday announced that Missouri’s small businesses impacted by the coronavirus pandemic can apply for a low-interest loan.
According to its website, The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Additional information, including application details, are available here.
Previous Update (Dated 03/20/2020):
Tax Filing, Payment Deadlines Extended To July 15
Friday, March 20, 2020, 3:30 p.m. CST – This morning the United States Treasury announced that the 2019 individual federal tax filing deadline will be moved from April 15 to July 15. The decision overrides this week’s previous Treasury direction that the April 15 federal tax filing deadline would remain in effect but that the 2019 tax payment deadlines would be extended. Both the federal tax payment and federal tax filing deadline are now July 15. Today’s announcement leaves several questions unanswered, and we expect updates to be required.
We have received no direction from individual states regarding potential state-level deadline extensions. At this time, the deadline for Missouri tax filing and payments continues to be April 15.
A third federal COVID-19 relief bill is being debated that would potentially bring further tax changes. We expect action in the coming days.
We will continue to monitor the situation at the federal and state level and provide updates.
Because of the uncertain, ever-changing circumstances being experienced throughout the world, Williams-Keepers LLC (WK) encourages its clients who are able to file on or before the traditional April 15 individual deadline. Clients can file their returns using the traditional deadline while delaying payment until July of any balances due to the IRS. Please contact your WK advisor to discuss your specific filing situation.
Use Of Electronic Document Sharing, Change in Business Hours, Temporarily Cancelling In-Office Meetings
We recommend that our clients heed suggestions to limit travel when at all possible and until further guidance is provided from federal, state and local health officials. To that end, we strongly encourage all clients to use our secure website portal to share documents electronically until further notice. For those who choose not pursue this option, a drop box will be available in the vestibules outside both offices so that clients can leave information for their advisors.
Effective today, WK will change its open-lobby office hours to 7:30 a.m. until 3 p.m. Monday through Friday. The offices can still be reached by phone – (573) 442-6171, Columbia and (573) 635-6196, Jefferson City – until 6 p.m. each weekday. Saturday, March 21 will be the last day either office offers Saturday office hours (Columbia office hours are 9 a.m. – 1 p.m., and Jefferson City office hours are 8 a.m. – noon tomorrow).
As we shared yesterday, the firm has temporarily cancelled all previously scheduled in-person client meetings in its Columbia and Jefferson City offices. We are still available to meet by telephone during business hours.
Ever-Changing Circumstances, News
WK greatly appreciates all of its clients and their attentiveness to the updates we have provided and will continue to provide in the coming days as official information is made available to us. We are committed to working with you during this challenging time and ensuring your questions are answered in a timely manner.
Previous Update (Dated 03/19/2020):
On Wednesday, March 18, Treasury released Notice 2020-17 to provide clarity on the announced extension of time to pay income taxes (previous alerts are found below). The Notice clarifies the following items:
- The 90-day extension to July 15, 2020 is an extension to pay only. Individuals and businesses are still required to either file their tax return, or file a tax return extension, by April 15, 2020. No other tax filings or payments have been extended.
- This extension of time to pay applies to both 2019 income tax balances due on April 15, 2020, and first-quarter 2020 estimated income tax payments due April 15, 2020. This includes second quarter 2020 estimated tax payments due June 15, 2020.
- A corporate taxpayer may defer up to $10 million in combined income tax payments (2019 income tax due and 2020 first-quarter estimated income tax due). All other taxpayers may defer up to $1 million in combined income tax payments.
- The failure-to-pay penalty and interest on the above-referenced amounts will begin accruing after July 15, 2020.
We will continue to provide updates as more information becomes available.
Previous Update (Dated 03/17/2020):
IRS Extends Tax Deadline in Response to COVID-19
The United States Treasury announced today that in an effort to help mitigate the effects caused by the spread of the Coronavirus (COVID-19) pandemic, the April 15 tax deadline will be extended by 90 days.
This extension will allow for up to $1 million dollars in taxes for individuals and $10 million in taxes for corporations to be deferred for 90 days. This extension is automatic, and will provide relief for individuals and corporations who are having trouble organizing tax records, paying tax obligations, or experiencing other complications due to the spread of COVID-19.
Previously, any extensions filed with Form 4868 required tax obligations to still be paid by the April 15 deadline, regardless of the fact that the deadline to file the return had been extended. Under these new requirements, the tax payments are not due until the new deadline.
The specific details of how such a policy will be carried out have not yet been provided by Treasury, and the states have not had a chance to consider whether to conform. We will continue to provide updated information as it is received.
Those that can still file and pay any tax obligations by April 15th are encouraged to do so. Williams-Keepers, LLC has extensive technological resources and the ability for our associates and member owners to work remotely. Additionally, our clients can share documents with the firm using WK’s secure website-based portal. If we can provide information about this resource for you, please contact us.
These technological capabilities will allow us to help our clients complete as much 2019 compliance work as possible in advance of the traditional April 15th deadline and we encourage clients to take advantage of these resources where possible. Our commitment to help navigate our clients through a complex financial world has never been more important, and we will continue to focus on issues affecting you and your business in the weeks and months ahead.
If you have any questions or concerns, please contact your WK advisor to determine how this relief may impact your specific situation.
Posted By Jeremy Morris, CPA & Mark Gingrich, CPA on 3-23-2020 | Topics: Articles, Client Alerts, Featured News & Resources, News, Resources, Tax Law,
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