Through these difficult times, our hearts go out to everyone suffering from this COVID19 pandemic.
As many of you have heard, the 4/15 tax deadline for 2019 returns has been extended to 7/15. This immediate response to the COVID19 pandemic was to eliminate the pressure around Tax Season for both the taxpayer and the preparers, and to allow more time for immediate cash flow needs.
In addition to the federal tax returns extensions, the TX Franchise report has been extended to 7/15 (originally due 5/15) and the Property Tax Renditions for Harris County have been extended to 5/15 (originally due 4/15).
If you cannot file your return by 7/15, an extension can be filed extending the federal deadline to file to 10/15 for individual and corporate returns.
If extensions were filed for partnership and SCorp returns by 3/16, the extended deadline is 9/15.
These federal extensions are for filing only and not paying taxes. Please discuss setting up estimated tax payments throughout the year to prevent underpayment and late payment penalties.
Texas Sales Tax reports are not extended due to fiduciary responsibilities of business owners meaning the funds are not the business funds since collected from the consumers; therefore, the tax reports and payments must still be remitted on time.
Since that initial response, many other initiatives are trickling down from Capitol Hill. We are gathering as much useful information from communications with other reputable colleagues including CPA’s, Enrolled Agents, bankers, and insurance advisors. We are also attending as many informational webinars as possible to put all the pieces together.
Here are some helpful links and others on the next page:
CARES ACT
“The greater the obstacle, the more glory in overcoming it.” Molière