The elongated/postponed regular tax season is finally over (January 15 – July 15):
We greatly appreciate how flexible, adaptable, and attentive our clients have been during this most unusual time we are experiencing. We have provided information on the ever changing tax return and tax payment due dates as they changed. Even so, there was a fair amount of confusion depending on when you received your completed tax return, what the rules/due dates were at that time, and when you sat down to write checks. Suffice it to say that most federal and Oregon due dates prior to March 17 were unchanged, federal due dates after March 17 and until July 14 were generally postponed until July 15, Oregon due dates for 2019 tax returns generally followed the federal, and Oregon payment dates for 2020 quarterly taxes were unchanged (April 15, June 15, September 15, and January 15).
With the regular tax season stretched out to cover 6 months, we find ourselves roughly equal to a normal year in terms of the amount of work we have completed through July 15.
Our employees are anxious and excited to enjoy some time away from work as are many of our clients. We encourage safety first and a high degree of respect towards others around you. We now know a new term = Social Distancing. Also, we now each have a new article of clothing = Mask.
If your tax return (business entity, trust, or individual) was extended what should you expect?
For all types of extended tax returns we strongly encourage/recommend that you provide us your tax information between now and August 15 so we have adequate time to work through the information and produce the best possible tax result for your situation.
The extended due dates for the most common tax return types are as follows:
- Partnership/LLC (form 1065) = September 15, 2020
- Sub-s corporation (form 1120S) = September 15, 2020
- Trust/fiduciary (form 1041) = September 30, 2020
- Individual (form 1040) = October 15, 2020
These extended due dates will arrive quickly. Please make it a priority to act by August 15 to provide us with the 2019 tax information needed to prepare your return
Contact us to discuss 2020 tax planning opportunities. They are many and varied based on your specific circumstances and based on the tax law changes that have arisen because of COVID-19.
- Businesses may have received PPP loans and now are faced with completing an application for forgiveness based on the expenses paid by the PPP funds – we can help.
- Individuals may be able to forego their normally required IRA distribution since RMDs can be skipped for 2020 – we can help.
- If you have been making charitable distributions from your IRA to satisfy your RMD should you do that in 2020? – we can help.
- If you expect to experience business losses or reduced individual income in 2020 is this an opportunity to convert a traditional IRA to a Roth IRA – we can help.
- Do you expect general changes in your individual tax return that could allow you to reduce your remaining estimated tax payments for 2020 – we can help.
- Have you experienced a one time event in 2020 that will increase your taxable income and need to know the tax or how to minimize it – we can help.
- Have you collected unemployment in 2020 without withholding federal or Oregon taxes and need to know what taxes will be due since unemployment compensation is taxable