The delayed 2019 filing tax deadline of July 15th 2020 is fast approaching. It’s important to note that while coronavirus is still impacting us, there are choices for taxpayers. It is still an option to extend your filing deadline to October 15th. This might be a beneficial option for some if your business is still experiencing disruptions due to COVID-19.
As cases of coronavirus continue to sky rocket across the state of Florida, for many business owners, the true extent of losses might not be known, so you might be asking yourself if you should in fact file next week, or ask for an extension for three months.
If you’ve held off this long, you might not even need to file for an extension. There is a chance that the IRS could extend the filing deadline even further than the current deadline. Treasury Secretary Steven Mnuchin indicated there is a chance of another postponement until September 15th. This would negate the need for a filing extension. This hasn’t happened yet though, and it isn’t something that you should depend on.
The benefit of delaying filing could give a business owner more time to discover losses which are directly related to the COVID-19 pandemic. The IRS usually allows losses due to unusual experiences such as natural disasters like tornadoes, floods. This pandemic is one of those unprecedented events. Many businesses have had to close completely, or have other tangible losses such as a drop in inventory.
Ultimately, choosing to file or asking for an extension is up to the individual taxpayer. At Howard & Company, we are working full time to process your tax returns. You are welcome to email or fax your information to us. You can also drop off your paperwork for your tax return and we will schedule a phone appointment with you.