IRS HELPS CLARIFY SOME IMPORTANT QUESTIONS RELATED TO THE JULY 15TH DEADLINE
By Nick Hopkins, CPA,  CFP®
Partner, Director of Tax Services
nhopkins@sponselcpagroup.com
 
The Internal Revenue Service has issued additional guidance on some commonly asked questions related to the postponement of the April 15 th  payment and filing deadline to July 15 th . A full list of all of the IRS Q&A's can be found in the link below. We have also recapped some of the more common questions.


IRA / HSA / MSA Contributions

According to the IRS: IRA, HSA and MSA contributions for the 2019 tax year, which were due to be paid by April 15, 2020, have also been extended to July 15, 2020. Because the due date for filing federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA, HSA and MSA for 2019 have also been extended to July 15, 2020.

Due Dates for 1st and 2nd Quarter 2020 Estimated Tax Payments

As most are now aware, the 1st  quarter 2020 estimated tax payment, originally due on April 15, 2020, has been extended to July 15, 2020. However, according to the IRS, the 2 nd  quarter 2020 estimated income tax payments are still due June 15, 2020. We will alert you if the IRS changes their position on this matter.

Due Date for Gift Tax Returns

The IRS has clarified that normal filing and payment due dates apply to gift tax returns. Therefore, if a taxpayer is unable to file their gift tax return by April 15 th , they will need to apply for an extension of time to file with the IRS.

Automatically Scheduled Payments with the IRS

If you are a taxpayer who facilitates payment through one of the Internal Revenue Service's electronic payment platforms and have scheduled your payment for April 15, 2020, your payment will activate on April 15, 2020 without additional action by the taxpayer. The IRS will not automatically reschedule your payment to July 15, 2020. Below is information provided by the IRS on how to cancel and reschedule your payment:
  • If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the "Look Up a Payment" feature. You can modify or cancel a scheduled payment until two business days before the scheduled payment date. The email notification you received when you scheduled the payment will contain the confirmation number.
     
  • If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on Payments from the EFTPS home page, log in, then click Cancel a Tax Payment from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
     
  • If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at (888) 353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.

  •  If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment
If we can assist you further with better understanding these updates and how they may affect you or your business, please call Nick Hopkins at (317) 608-6695 or email nhopkins@sponselcpagroup.com .