Holiday Gift Guide 2024: Shop Small with these Community-Centric Small Businesses
Your new 2020 federal tax deadline – July 15
Small Business
It happens every year. April 15 is ingrained in us. It’s Tax Day. Not this year, though.
The new federal tax due date for 2020 is July 15.
As a small business owner faced with rapid changes due to the coronavirus, you should mark your calendar to make sure you benefit from this extra time.
Like many things, the rules have changed because of the impact of COVID-19. Last month, the IRS extended the federal income tax deadline. That includes a deferment of tax payments to July 15.
Typically, if a taxpayer seeks an extension to file forms, he or she must still make their payments on time. This year, everything will be due July 15
ANSWERS TO TOP QUESTIONS
Do I need to file an extension? No. You don’t need to file an extension form to receive the additional three months. The IRS made the July 15 date automatic for all taxpayers.
Can I get an extension beyond July 15th? Further extensions remain an option. If personal filers want to seek extensions past July 15, they must file form 4868. Businesses can do so by filing form 7004.
When will refunds be issued? Filers expecting a refund not only can, but should submit their returns before July 15. The IRS is aiming to issue most tax refunds within three weeks. For instance, if you file on May 1, you should receive your refund by May 22.
Refunds will be ongoing, said agency commissioner Chuck Rettig, because processing tax returns is one of the IRS’ “mission-critical operations to support the nation.”
What about state tax due dates? The IRS’ decision prompted several states to follow their lead and also push back their due dates to July 15. Those states include California and Arizona. Nevada does not collect income tax.
According to the American Institute of CPAs, the new July 15 dates in these states apply to:
Arizona – for extension of filing and payment, for individual, corporate, and fiduciary tax returns, and waivers of late filing and late payment penalties.
California – for extension to filing and payment (including second and first quarter estimated payments), LLC taxes and fees, non-wage withholding payments, waivers of interest and penalties for individuals and businesses.
For information on extensions in your state, see AICPA’s chart.
STAY CONNECTED AND UP TO DATE
We are closely monitoring best practices and resources to help you manage your business and will frequently share the latest information. Here are the ways to get the latest details:
- Subscribe to our blog – We will continue to offer weekly highlights on our blog.
- Bookmark the Tips and Resource Guide – It has important links to SBA Disaster Loan applications, Emergency Grant/Loan programs, tips on managing cash flow and more.
- Subscribe to our weekly e-newsletter, Source – You’ll get the latest news and guidance from trusted outlets like Small Biz Daily, Entrepreneur, Inc. and more.
In case you missed it:
CDC Small Business Finance offers several loan options for entrepreneurs and business owners. Contact our loan experts and they’ll work to match you with a financing plan that best suits your needs. Reach us at loaninfo@cdcloans.com or (619) 243-8667.
