Yesterday the Treasury Secretary made an announcement.  Within minutes articles were being published and many of them were inaccurate or misleading.  With how rapidly the news cycle flows these days many skim something or only half understand it and off they go to publish an article.

To date, no official policies have been set and no guidance from the IRS has been issued.  Based on the Secretary’s comments, what is expected is that the filing deadline of April, 15 will not change but the payment deadline will be extended into July. This won’t have an impact on those expecting refunds. However, if you owe, you will likely have extra time to pay your balance due if you need it. That’s the only aspect we expect to happen. There’re still several areas that remain unclear.

What about the 4/15 and 6/15 estimated payments?

Are not for profits getting an extension?

What about trusts and estates?

What’s going to happen on the state level?

 

At this point, everything is just speculation.  As we learn more, I’ll post more.

It’s important to remember that the filing deadline has not changed and is not expected to change.  If you think you have until July to file your taxes, then you’ll wind up with a letter from the IRS assessing their punitive late filing penalties.

My main focus is on taxpayer representation, and penalty abatement is a part of that.  If you’ve been assessed penalties from the IRS feel free to contact me about it so we can discuss a resolution and hopefully get those penalties dropped.  These penalties are easily avoided however if you just make sure you either file your return or an extension by April 15th.

Joseph Orabona

Vector Tax & Accounting LLC

576 Elm St.

Windsor Locks, CT 06096

 (860) 580-5183

info@vectortax.com