IRS Extends Second Quarter Estimate Due Date— PLUS More

Last month the IRS announced that taxpayers generally have until July 15, 2020 to file and pay federal income taxes originally due on April 15. Notice 2020-23 extends more deadlines to July 15, 2020. The extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations, and other non-corporate tax filers qualify for the extra time.

The following are extended to July 15, 2020:

  • Both the first and second quarter estimated tax payments
  • Fiscal year corporations with a due date between April 1 and July 15
  • Form 706 filing and payment
  • Form 8971, Information Regarding Beneficiaries Acquiring Property from a
  • Decedent
  • Estate tax payments of principal or interest due as a result of an election made under §§6166, 6161, or 6163
  • Gift and generation-skipping transfer tax payments and return filings on Form 709
  • Forms 990-T and 990-PF
  • Americans who live and work abroad

Refunds for 2016 Returns

For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15, 2020 date.

Other Time-Sensitive Actions
The IRS has also determined that any person performing a time-sensitive action listed in either §301.7508A-1(c)(1)(iv) – (vi) or Revenue Procedure 2018-58, which is due to be performed on or after April 1, 2020 and before July 15, 2020 (Specified Time-Sensitive Action) is an Affected Taxpayer.

The following are extended:

  • An investment in an Opportunity Zone Fund due to be made during the 180-day period, described in §1400Z-2(a)(1)(A)
  • Tax Court petitions
  • Claims for refund of tax

Extension to Oct. 15, 2020
Taxpayers who need additional time to file may file the appropriate extension form by July 15, 2020, to obtain an extension to file their return— Oct. 15, 2020 for an individual.

Webcast on the Coronavirus Tax Update

A 2 hour webcast titled The Coronavirus Tax Update is available to watch now!The webcast will include:

  • The filing tax delay – news and update
  • The stimulus rebate payments – news from the IRS and an update on client questions
  • Other individual changes- charity, medical and student loans
  • Coronavirus “disaster” loss reimbursements- §139
  • Retirement plan changes
  • Paycheck Protection Program loans
  • Sick leave and Family leave details
  • Employer Retention Payroll Tax Credit rules
  • Employer payroll Tax Delay procedures
  • Other business changes – NOLs,461(l), §163(j)- and more
  • Two client letters are included to help you communicate with yoru clients

Learning objectives

  • Be able to answer questions from slients on tthe stimulus rebate
  • Understand the tax provisions of the CARES Act applying to individual clients.
  • Understand the tax provisions of the CARES Act applying to business clients.
  • Be able to provide clients with answers to their “how, when and how much questions” on the new SBA

Sharon Kreider, CPA, has helped more than 15,000 California tax preparers annually get ready for tax season. She also presents regularly for the AICPA, the California Society of Enrolled Agents, CCH Audio, and Western CPE. You’ll benefit from the detailed, hands-on tax knowledge Sharon will share with you—knowledge she gained through her extremely busy, high-income tax practice in Silicon Valley. With her dynamic presentation style, Sharon will demystify complex individual and business tax legislation. She’s a national lecturer for business and professional groups and consistently receives outstanding evaluations. In 2014, she was awarded the prestigious AICPA 2014 Sidney Kess Award for Excellence in Continuing Education.

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The new reporting requirements on brokers are addressed in Section 80603 of the bill. “Broker,” by definition in Sec. 6045 (c)(1), is expanded to include “any other person who (for a consideration) regularly acts as a middleman with respect to property or services…A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person.” In turn, the bill defines a “digital asset” as “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.