The honeymoon is over – Part III

In previous blogs The Honeymoon is Over – It’s Time to Think Taxes! and It's Time to Prepare and File your 2019 Tax returns, I discussed the upcoming, looming tax return filing and payment deadline of July 15. You can extend the time to file, but not to pay – so budget accordingly.

Other extension, deffal or benefits bestowed to Taxpayers due to COVID-19 also expire July 15 or the end of this month. For example, federal IRS tax returns are due or can be extended to October 15. 2019 taxes are due. The $600/month supplemental unemployment payments end. The 2020 tax year estimated tax payments are due. And, anyone who had an installment agreement and deferred monthly payments must now resume those monthly payments or be found in default.

The IRS stated there will be no further extensions. So the Honeymoon ends and tax payments are due. Budget accordingly!

TAX TIIP: U.S. citizens and resident aliens generally have the same filing and payment requirements regardless of where they live. The July 15 postponed deadline also applies to nonresident aliens and foreign entities with a U.S. filing and payment requirement.

TAX TIP, TWO: Taxpayers who still owe 2019 income tax, as well as estimated tax for 2020, must make two separate payments on or by July 15, 2020: One for their 2019 income taxes owed and one for their 2020 estimated tax payments. The two estimated tax payments can be combined into a single payment if you do not owe for back taxes (as the IRS will apply the funds to past due taxes if not properly directed on the payment instrument). The better practice would be to write separate checks (or make a separate electronic payment for each tax period). Be sure to include your SSN or EIN and the tax period and Form number on the memo line so the payment gets properly applied.

When in doubt and need a top Arizona tax lawyer, call:

With offices around the Phoenix valley, Tucson, and Flagstaff.