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Coronavirus 2019 Tax Changes [Fed + State]

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  • #31
    If I understand it right in this fast changing scenario

    IRS filing deadline - extended to July 15th
    Balance due, if any - extended to July 15th
    1st estimated payment normally due April 15th - extended to July 15th
    2nd estimated payment, normally due June 15th - no extension yet??

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    • #32
      Agree. I guess I always took for granted the luxury of paying taxes. I’m going to miss that for the next 4 months of my 90% furlough

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      • #33
        Originally posted by Kamban View Post
        If I understand it right in this fast changing scenario

        IRS filing deadline - extended to July 15th
        Balance due, if any - extended to July 15th
        1st estimated payment normally due April 15th - extended to July 15th
        2nd estimated payment, normally due June 15th - no extension yet??
        I believe both estimated tax payments are due July 15 for now. (For California as well, my state). The bill that is making it's way through Congress may push that deadline possibly to Oct 15.

        https://www.bloomberg.com/news/artic...5-mnuchin-says

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        • #34
          I am not a tax lawyer or accountant or financial professional. (I'm barely a professional anything...)

          As the current laws/orders stand right not, estimated payments:

          q1: July
          q2: June
          q3 & q4 unchanged.

          Originally posted by Forbes article
          What about estimated tax payments? The relief also includes estimated tax payments for the tax year 2020 that are due on April 15, 2020. Please note that there is a second estimated tax payment due during the deferral - the one due June 15, 2020 - but the IRS has not indicated that amount is eligible for deferral. The Notice and subsequent guidance continue to specifically reference estimated payments “that are due on April 15, 2020.”
          ^^ https://www.forbes.com/sites/kellyph...afraid-to-ask/
          __________________

          "CoronaBill" #3 is being crafted & may consolidate the QA1/Q2/Q3 payments into a single payment due October 15, 2020.

          Originally posted by another Forbes article
          Filing Deadlines. ... However, the bill would also extend the due date for estimated payments for 2020 to October 15, 2020, and would treat ALL estimated payments due through October 15, 2020, as "one installment due on such date." In other words, there would be no need to write separate checks for the skipped April and July estimated payment dates if the proposal passes.
          ^^ https://www.forbes.com/sites/kellyph...o-coronavirus/
          "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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          • #35
            Yes, we’re still waiting on clarification for 2nd estimate. Also, hoping there is something in the works for states to sign on to a coupling bill and have to opt out for decoupling. It will be a bit chaotic if all states don’t fall in line as we file in most lol.
            Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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            • #36
              Originally posted by Cubicle View Post

              "CoronaBill" #3 is being crafted & may consolidate the QA1/Q2/Q3 payments into a single payment due October 15, 2020.




              The 3 consolidated quarterly payments were the first I'd read of that. I started getting excited with the paragraph titled "Charitable Contributions Move Above The Line" but it looks like it'll only apply to certain contributions and limited to $300.

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              • #37
                Originally posted by jfoxcpacfp View Post
                Yes, we’re still waiting on clarification for 2nd estimate. Also, hoping there is something in the works for states to sign on to a coupling bill and have to opt out for decoupling. It will be a bit chaotic if all states don’t fall in line as we file in most lol.
                I feel bad for CPAs because any kind of bill they pass is likely to have all kinds of provisions that is going to affect you/your clients.

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                • #38
                  Originally posted by CordMcNally View Post

                  I feel bad for CPAs because any kind of bill they pass is likely to have all kinds of provisions that is going to affect you/your clients.
                  You are so kind - it could be a lot worse! We are especially blessed, as we’re still able to carry on meetings, were already set up for this, I’m the only high-risk team member [but only b/c I‘m 62, otherwise in excellent health and brain is still functional ;-) ], and we are in a small town 2.5 hours from any airport. We began locking our doors to walk-ins a week ago and hold virtual meetings with each other in our small office building. Laura has really been on top of creating and enforcing safety measures and is a real champ.

                  But that d/n keep ppl from making incredibly stupid decisions, as I posted on another thread (church continued to hold services b/c they “thought” they had taken appropriate measures, visitor came in who h/b told to stay home, she visited a hospital employee who now has COVID19). We were pretty isolated until then - that is 20 miles away, though, nothing like NYC. Our governor has been proactive.

                  I’m far more afraid of idiots than the IRS at this point.

                  We are praying for all of our doctor families. Please do what you can to stay safe and well.
                  Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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                  • #39
                    Originally posted by jfoxcpacfp View Post
                    Yes, we’re still waiting on clarification for 2nd estimate. Also, hoping there is something in the works for states to sign on to a coupling bill and have to opt out for decoupling. It will be a bit chaotic if all states don’t fall in line as we file in most lol.
                    This is not good. The AICPA is tracking state filing updates and they are so random. If you want to see what your state has decided - if anything - scroll down the first list. If you keep scrolling to your individual state, you will find current laws in place before any adjustments for COVID.

                    NY coupled with IRS just this weekend, so it's not yet updated on above list. Don't know of any others; client just happened to ask about NY this morning and I checked.
                    Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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                    • #40
                      ^^^ Hmmm, Jersey... of course. I read that the bill to delay was sent to the governor, I have not read he signed it.

                      Strange (not really... "Jersey") that the state deadline will be what ever the IRS deadline is. ... Except not later than June 30. Yep, sounds about right. No matter what the timing will be off from federal. Jersey.
                      "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

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                      • #41
                        In case anyone is still lacking clarity on IRS deadline changes, you can find a helpful Q&A here.
                        One change that I haven't seen discussed yet (admittedly, I have not been on the forum much lately) is that the deadline for IRA contributions has also been moved to 7/15.
                        Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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                        • #42
                          Originally posted by jfoxcpacfp View Post
                          In case anyone is still lacking clarity on IRS deadline changes, you can find a helpful Q&A here.
                          One change that I haven't seen discussed yet (admittedly, I have not been on the forum much lately) is that the deadline for IRA contributions has also been moved to 7/15.
                          And HSA contribution deadlines have been moved to July 15th also!

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                          • #43
                            In http://Filing and Payment Deadlines Questions and Answers published yesterday, the IRS has clarified the various deadline issues:
                            • 2020 Taxes
                              • The 2020 tax filing deadline is 07/15/20 (IRS Notice 2020-18). This can still be extended until 10/15/20 with an extension request by 07/15/20.
                              • The first quarter estimated tax deadline is 07/15/20. The second quarter estimated tax deadline will not be postponed, it remains 06/15/20 (Q&A 16)
                              • If you have used tax software to schedule a 04/15/20 tax payment you can contact the U.S. Treasury Financial Agent at 888-353-4537 to cancel (Q&A 14)
                            • 2020 Contributions
                              • The IRA contribution deadline has been postponed until 07/15/2020 (Q&A 17)
                              • The HSA contribution deadline has been postponed until 07/15/2020 (Q&A 21)
                              • The 401k, SEP and SIMPLE IRA plan employer contribution deadline has been postponed until 07/15/2020. This includes sole proprietor employee deferrals. These can still be extended until 10/15/20 with an extension request by 07/15/20. (Q&A 20)
                            I suggest reading the entire Q&A to see if any of the other answers apply to you.

                            Edit: Here's the real link: https://www.irs.gov/newsroom/filing-...ns-and-answers
                            Last edited by The White Coat Investor; 03-25-2020, 12:39 PM.

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                            • #44
                              Originally posted by Larry Ragman View Post
                              I just saw news that the April 15 deadline is being extended to July 15. Not sure how this is an effective policy if the goal is to get tax refunds into the hands of taxpayers as a stimulus. To do that shouldn't they encourage folks to file sooner? Works well for me, though, because I owe a modest sum.
                              You can still file early.
                              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                              • #45
                                Originally posted by Larry Ragman View Post
                                I just saw news that the April 15 deadline is being extended to July 15. Not sure how this is an effective policy if the goal is to get tax refunds into the hands of taxpayers as a stimulus. To do that shouldn't they encourage folks to file sooner? Works well for me, though, because I owe a modest sum.
                                For those who became attendings in 2018 or 2019, prob won’t want to file early (even with a refund) until the changes are finalized. I realize a lot of ppl are on top of this, but we are getting many questions from clients b/c proposed payment relief can be based upon either 2018 or 2019 (as currently proposed) depending upon whether you have filed 2019. [This is a loophole for many so I wouldn’t be surprised for it to change.]
                                1. If you became an attending in either 2018 or 2019, do not file until we get clarification.
                                2. If you retired in 2018 or early 2019, probably better to file as soon as your return is finalized so you can use the lower income year.
                                Keep this page bookmarked for referral, although I feel confident that one of the usual suspects will post a notification as soon as the information is available...doubt I’ll be able to report very timely while deep in the heart of taxes for the foreseeable future.

                                Take care, you guys - please stay safe and well. We’re praying for you, your colleagues, and families.
                                Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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