As the saying goes, there are two things in life that are certain: death and taxes. While nobody can permanently escape either, everyone tries their best to do so. This makes sense when it comes to dying, but it might not always make sense for paying taxes.
We are living through a very scary time right now as COVID-19 spreads across the globe, forcing billions of people to stay in their homes. Back in January, I mentioned the trade war with China, escalating tensions with Iran and wildfires in Australia as scary headlines that might draw too much of your focus. Little did I know, just a few short months later, we would be in the midst of a global pandemic. I think it’s safe to say the headlines have become a lot scarier now. Let’s review what happened in the first quarter, what we learned and where we go from here.
We find ourselves in uncharted territory in many different aspects of our lives today. As the country and the world struggles through the COVID-19 health crisis and resulting financial implications, we have been focusing on what we CAN control. While everyone’s situation is unique, there are a number of planning strategies and ideas that you should consider right now.
It seems like every day there is a new announcement or change to the tax laws relating to Coronavirus relief. The massive CARES Act was passed into law on Friday with a number of tax provisions, while the Treasury department has released additional guidance regarding tax filing deadlines over the past few weeks. We are trying to stay on top of how this will impact you and we thought we’d try to answer some of your frequently asked questions.
On Wednesday, the IRS officially announced an extension of the April 15th tax payment deadline for 90 days until July 15th, 2020. Today, Treasury Secretary Steven Mnuchin announced via Twitter that this extension will also apply to the actual filing of returns:
We are living through a unique time in history. As cases of Coronavirus (COVID-19) continue to increase throughout the country, extreme measures are being taken to try to slow that spread. These precautions will mean massive disruptions to our daily lives that could last weeks. While this is a difficult and scary time, our focus should be on the health and well being of everyone, particularly those most at risk of this disease.