The spread of COVID-19 across the United States has resulted in changes to nearly every aspect of our everyday lives. Since businesses have borne the brunt of the wreckage caused by this virus, the IRS has extended the deadline for 2019 taxes to July 15, 2020. Keep reading to learn more about this new deadline and how you can count on the Sacramento tax accounting firm Cook CPA Group for our tax preparation services.
The New Deadline for Filing Federal Taxes
The new federal tax deadline has been adopted to help individuals and businesses cope with financial fluctuations following COVID-19. The following is information that individual taxpayers and businesses can use while doing tax preparation and planning for their 2019 taxes.
Who Is Eligible for the New 2019 Federal Tax Deadline
Anyone who has previously had a federal income return or tax payment due on April 15 is eligible for a deadline extension. The new deadline applies to individual taxpayers and businesses (including trusts, estates, and unincorporated business entities). The deadline applies to both federal income tax payments from 2019 and estimated federal income tax payments for 2020. Individuals do not need to be sick with COVID-19 to qualify for relief.
Postponed Form Deadlines
The new federal tax deadline applies to the filing and payment of the following forms: Form 8991, Form 8960, 1120-RIC, 1120-SF, Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, Form 1041, 1041-N, 1041-QFT, Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS.
Tips for Filing Federal Income Tax Returns
Even though the federal income tax deadline has been moved to a later date, it’s still important to be cognizant of possible errors and mistakes. Here are some things you can do to avoid complications with your federal income tax return.
Do Your Best to Meet the Deadline
The new federal tax filing deadline that was issued in response to COVID-19 allows many people to have some more time to file their federal tax returns. Filing on time is still as important as it was in prior years when a normal deadline was in place.
Failing to file and pay taxes on time can result in both failure-to-pay penalties and failure-to-file penalties, both of which can be extremely costly. The penalty for filing to pay on time is .5% per month, plus interest and the penalty for failing to file on time is 5% per month, plus interest (the penalty for the latter is higher because, according to the IRS, failing to file is a more serious issue than failing to pay).
Taxpayers can use some tools and resources to increase their chances of filing before the deadline. Firstly, taxpayers should note that paying taxes online can eliminate the risk of filing and paying late since mix-ups at the post-office are a possibility. When you file and pay online, you can be certain that it was received at the moment you submit it. If you file your taxes using the mail, you may want to use a certified mail service such as FedEx Priority so that you can be certain that your forms and payment make it to the IRS safely. Finally, it’s never a bad idea to hire an experienced tax preparation professional to help you with your taxes. Meeting with a tax professional can help you gain certainty that you’ve taken advantage of available tax breaks, kept penalties to a minimum, remained in compliance with IRS regulations, and have avoided submitting inaccurate information.
Submit Accurate Information
A surprising number of tax returns with inaccurate information are submitted each year. Submitting an inaccurate return can prevent you from getting the return you’re entitled to or increase the amount of taxes you owe. Before submitting your tax return, make sure that you check multiple times for misspellings, missing signatures, errors in calculations, incorrectly entered Social Security numbers and bank account numbers, incorrect filing statuses, and names and addresses that are out of date. You can decrease your chances of submitting inaccurate information by meeting with a knowledgeable tax professional before submitting them.
Use Deadline Extensions Wisely
The new tax filing and payment deadlines allow for taxpayers to file for due date extensions of up to six months. It’s important for taxpayers to note that this extension applies only to filing a return. It does not give taxpayers extra time to pay their taxes.
Cook CPA Group’s Tax Preparation Services for Sacramento Residents
The experienced accountants from Cook CPA Group are prepared to help both individuals and businesses in the Sacramento area with their taxes. The following services are available to Sacramento taxpayers.
Tax Services for Individuals
Cook CPA Group can help individuals (and joint-filers) with long-term tax preparation, assist with annual federal and state tax returns, identify credits and commonly overlooked deductions, advise them as they get on an IRS payment plan, if needed. We can also assist individuals with estate planning and can even train them in QuickBooks so they can empower themselves to take control of their financial futures.
Tax Services for Businesses
We know how difficult it can be for businesses to maintain their day-to-day activities while keeping a close eye on their finances. At Cook CPA Group, we can help businesses with all of their federal corporate tax preparation, assist with claiming credits and commonly overlooked deductions, and advise them on paying estimated corporate taxes.
California Tax Accountants and CPAs Serving Roseville and Sacramento
Coronavirus has changed daily life in the United States and will continue to wreak havoc on our financial lives for the foreseeable future. During these challenging times, know that you can count on California accounting firm Cook CPA Group to answer any questions you may have about your federal taxes. Call us at (916) 432-2218 today.