Important Tax Date Approaching and PPP Update
Important Tax Date Approaching - 2019 Individual Income Tax Return and 2020 1st and 2nd Estimated Quarterly Tax Payment DUE JULY 15, 2020
2019 Taxes due 7/15/2020:
July 15th is the deadline to file your 2019 Form 1040, U.S. Individual Income Tax Return and pay any remaining 2019 tax liability.
Need more time to prepare your individual federal tax return? You can get an automatic 6 month extension to file. Please note, this is an extension of time to file your return and NOT an extension of time to pay your taxes. If you think you may owe tax when you file your return, you’ll need to estimate your total tax liability and subtract how much you’ve already paid.
Per the IRS, there are three ways to request an automatic extension of time to file a U.S. individual income tax return.
1. You can pay all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System, or using a credit or debit card.
2. You can file Form 4868 electronically by accessing IRS e-file using your home computer or by using a tax professional who uses e-file.
3. You can file a paper Form 4868 and enclose payment of your estimate of tax due (optional).
Contact us for assistance in requesting your extension!
2020 Taxes – First estimated payment due 7/15/20:
If you are required to pay estimated quarterly taxes, your first payment is due July 15, 2020.
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments to the IRS if they expect to owe tax of $1,000 or more when their return is filed. The threshold for paying estimated state income taxes can vary by state - we can check with your state to see what that is.
If you didn’t pay enough through the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated taxes. 2020 estimated taxes are due Q1 & Q2- 7/15/20, Q3-9/15/20, Q4-1/15/21.
Contact us if you need assistance determining your estimated tax payment amount or how to submit the payments.
Notice: Paycheck Protection Program has reopened
The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
Guidance from the Small Business Administration (SBA), the U.S. federal government & banks continues to evolve, and the initial loan system ran out of money in early April 2020. Still, a second round of PPP funding has arrived. And new SBA steps may ensure that more dollars flow to smaller businesses.
Check this blog for ongoing CARES Act and SBA updates involving:
The Paycheck Protection Program;
EIDL Loan Advance;
SBA Express Bridge Loans; and
SBA Debt Relief.
Please if you have any questions and/or concerns do not hesitate to call or email us. Thank you very much. We appreciate your business.
Online Bookkeeping Inc.