After last year’s challenges with tax filing deadlines, several House Democrats have once again asked the Internal Revenue Service to extend the April 15th tax filing date. IRS Commissioner Charles Rettig has stated that the IRS is not planning to extend the tax filing date. Of course, Rettig also said that a final decision on the matter has not yet been reached. According to Rettig, “We have our eyes on it…we’re aware of it. We’re aware of people who are asking for it.” He also said that extending the filing season creates confusion for taxpayers and backs up the IRS systems.
While an extension may happen, you need to get everything assembled to prepare your returns as soon as possible. Do not rely on Big Brother to extend the filing deadline again. The filing deadlines are as follows:
March 15
Partnerships, including LLCs
S Corporations
April 15
Individuals
C Corporations
Trusts & Fiduciary Returns
Always remember a taxpayer can file a request for a 6 month extension of the time to file, but all balances remain due and payable by the original April 15th due date.
You may also need to consider the following for your 2020 tax return filing:
• Stimulus amounts received, both last year and this year
• If you had any financial holdings outside of the United States
• If you had acquired any form of virtual or crypto currency
One last thing, even if you don’t qualify to take Itemized Deductions and use the Standard Deduction, you are still entitled to deduct up to $300 in cash contributions per tax return, not per person, for 2020.
Michael Karu, CPA
Sr. Partner