
IRS delays tax-filing date to july 15, matching payment deadline - kamaraju
https://www.bloomberg.com/news/articles/2020-03-20/tax-filings-payment-due-date-extended-to-july-15-mnuchin-says
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djyaz1200
Heads up to small business entrepreneurs, SBA and other emergency financing
options may be more readily available to you with 2019 tax returns completed
so you may want to get them done ASAP if you haven't already.

~~~
nojvek
Where are you getting this info from ?

~~~
CamperBob2
It's common-enough knowledge that the first thing any lender asks for will be
copies of your 1040 or other forms for the most recent tax year.

You don't have to _pay_ until July, but it's not bad advice to go ahead and
file, if you think you may need documentation for 2019 personal or business
income.

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MichaelApproved
> _Treasury Secretary Mnuchin announces decision in tweet_

Crazy how these announcements are done via tweet. It would be nice to have
something formal listed on their website.

Looking at their home page [https://www.irs.gov](https://www.irs.gov) it still
says "File Your Tax Return - Tax deadline is April 15,2020".

Edit: Am I going crazy? The article used to say it was published on the 17th.

~~~
nightski
I'm sure it will be updated. He probably just wanted to get the word out as
soon as possible.

~~~
MichaelApproved
It's been 3 days...

Edit: I could've sworn the article said it was published on the 17th. Now it
says the 20th.

~~~
tannerwj
The payment deadline was moved 3 days ago, the filing deadline was moved this
morning

~~~
MichaelApproved
I could've sworn the article said it was PUBLISHED and UPDATED on the 17th.
Now it says it was published and updated on the 20th.

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jackschultz
Thank god. My parents have a smallish accounting firm, and were so worried
about still having to file. Things need to hold for that as well. The worry
about employees coming in to the office and clients as well. They want to just
close the office for two weeks and hold up with this all, as is the case
everywhere.

Still though, they're both very worried about clients calling in and still
expecting their taxes to be filed which cases like this have happened in the
past. For example, one didn't want to come to their office, and said they
should FedEx the filing already, which means someone is going to have to stand
in line with others at a FedEx store, which is absolutely not something to be
doing now, no matter how spaced out the line is.

This leaves the question of what they're supposed to do, because I'm sure
there are clients with the attitude of this virus being overblown. And won't
be happy if my parents come off as weak for not working. Obviously they
should, but how much the client comes first is constantly an issue, especially
now.

~~~
frabcus
2 weeks is too short a time to expect the lockdown for.

It'll last certainly months, maybe a year (until vaccine found).

Accountants would be well advised to shift to all digital means, taking scans
of documents etc.

~~~
411111111111111
Italy expects infections to peak in 2 weeks.

If that is true, the lockdown is probably unnecessary in May, as the other
nations aren't that far behind

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orblivion
I wonder about the Roth IRA deadline, since some people aren't sure whether
they're above the cutoff until they do at least some of the calculations.

~~~
slg
A nice benefit of Roth IRAs is that you can remove your contributions (not
profits) without penalty. You can always contribute it now, leave it in cash
so it is liquid, and then withdraw it if necessary at a later date.

~~~
frei
It will be liquid, but it will still have attributable gains if the account
value increases. That amount will also need to be removed, which will come
from previous contributions, before your actual tax deadline, which may be
extended to October. Just a heads up.

~~~
lyrrad
This is incorrect. Withdrawals from Roth IRAs follow particular ordering rules
and one can withdraw direct contributions without a 10% penalty or tax.

In general, direct contributions are taken out first, followed by conversions,
followed by earnings. (For the exact rules, including more details on
withdrawal ordering of conversions I'd recommend researching Roth IRA
withdrawal ordering. Note that the rules for accounts like Roth 401k are
different.)

Direct contributions are not subject to tax or penalty when withdrawn, so if
one can always withdraw their total direct contributions without tax or
penalty from a Roth IRA, while leaving earnings in the account. Withdrawing
taxable portions of conversions or earnings may result in tax and/or a 10%
penalty, depending on ones circumstances.

~~~
soared
Doesn’t your last sentence contradict the rest of your post? You get taxed any
time you withdraw something from a Roth, since you invested it pre-tax.

~~~
drdec
No, a Roth IRA is funded with post-tax money. A traditional IRA is funded with
pre-tax money.

Once you reach the correct age, money coming out of a Roth IRA is not taxed.
Money coming out of a traditional IRA is taxed.

As GP noted, contributions to a Roth IRA may be withdrawn at any time without
penalty or taxes. The gains from those contributions follow different rules
however.

E.g. Suppose you put in $1000 to a new Roth IRA account with no other
contributions. Suppose the account is worth $1500 today. You may withdraw the
$1000 you put in with no penalties or taxes leaving $500 in the account.

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echelon
I was really counting on launching a startup this year. It's R&D heavy, and
the timing is (was) just right for product/market fit.

I bought a lot of equipment last year and started writing the software. I want
to hire folks and do fundraising, but this seems like a really bad time for VC
investment.

Could I get a small business loan in this environment? Are there any
subsidies?

~~~
PopeDotNinja
A small business loan is usually for traditional businesses with physical
equipment that can be repossessed, or something like a doctor's office where
the risks are fairly well understood. Is you physical equipment something that
could be re-sold for some notable percentage of the purchase price?

~~~
echelon
The equipment has a very small market, per the nature of the field. I don't
think I can sell a bank on it, unfortunately.

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weej
The announcement from the IRS can be found here:

[https://www.irs.gov/newsroom/payment-deadline-extended-to-
ju...](https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020)

~~~
chanfest22
This is a separate announcement from two days ago about the payment extension
(not the filing extension that was separately tweeted this morning).

~~~
weej
You're right. My mistake. I intermixed the two as delayed income tax payment
also applied to filing, which didn't, until today.

~~~
chanfest22
Don't blame you ... it's super confusing

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smallgovt
This is good news for independent contractors who are struggling to make ends
meet.

~~~
dugmartin
You should _always_ keep a running estimated tax amount as an independent
contractor and then keep that amount as either a buffer in your cash account
or in a separate dedicated account.

~~~
derision
Even if they have that amount and more set aside, extreme circumstances might
wipe out all cash reserves

~~~
dugmartin
I guess what I’m saying is that cash shouldn’t exist for you to use for
anything else - the folks that that are expecting it have guns and their own
courts and judges.

~~~
sokoloff
The penalties and interest for underpaying are quite reasonable and
proportional, IMO (and the penalties are often waivable, making for only
interest charges, which are _very_ reasonable.)

If it’s a choice between eating and keeping your car/house and paying your
taxes on time, choose the former every time!

~~~
frizkie
This exactly. The IRS is not the Mafia.

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yellow_postit
Wonder how this will impact accountants. Usually they are looking forward to
the pressure relenting as the tax season comes to an end.

~~~
dannypgh
It probably won't affect them nearly as much as widespread shutdowns, social
distancing, and mass COVID-19 casualties due to hospital shortages will.

I think it's useful to keep things in perspective - life in the United States
is changing, and will be significantly altered for the next several months at
least. My net worth on paper has fallen 30% this year, but right now there's
exceedingly few places for me to spend money, so, there's that.

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mharroun
The deadlines for state taxes still remain.

~~~
orblivion
Don't state tax forms take federal taxes as some of the inputs?

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Mountain_Skies
Many do and state tax policies often are intertwined with federal tax policies
but each state has its own set of laws and policies, some of which will need
to be changed if they want to match those of the IRS. The difficulty for some
states is going to be that they're already tapping into their rainy day funds
pretty heavily and unlike the federal government can't run deficits, so they
could run into cash flow issues when delaying tax payments. Of course that's
bound to happen eventually anyway as sales tax revenue plummets and the number
of people who can't pay other taxes rises.

~~~
paulmd
Fortunately the vast majority of folks who didn't fuck with their withholdings
will usually have a refund. So the state would actually get to hold onto your
money for longer.

It does, however, kind of neutralize the point of the stimulus bill to some
extent because this encourages you to hold off getting your refund if you are
in the phase-out region (75k to 99k) and your income went up in 2019. If you
don't file before they send the checks, they use your 2018 number, so it's
potentially better to not file until the last minute. Which means a couple
hundred bucks per person that isn't out there stimulating the economy. Again,
assuming an average person that didn't fuck with their withholdings.

The threshold is outright bad policy but god forbid congressional republicans
just pass a stimulus without trying to own the libs in the high-cost-of-living
blue states.

~~~
orblivion
> So the state would actually get to hold onto your money for longer.

What if they file on April 15th? Do the refunds also come 3 months later?
Would be bad PR given the circumstances if nothing else.

~~~
paulmd
The refunds usually come within a couple days of submitting, if it's
electronic. Longer if it's paper. State is usually within a week or two for my
state, but may be different for yours.

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nodesocket
Does this apply to quarterly tax payments for 2020 that are due April 15th as
well?

~~~
pwned1
Yes.

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dharmon
Does anyone know if this also pushes the 401(k) contribution deadline?

~~~
i_am_viet
401(k) deadlines are calendar year. Are you thinking of something like the
Roth IRA, where the deadline for the earmarking of contributions for the
previous year is April 15?

~~~
dharmon
"solo" / self-employed 401(k), which normally has a contribution deadline of
April 15. I'm curious if that is getting pushed back as well.

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fortran77
Many small businesses already had to file by March 16. And even if they filed
for "extensions", payments of all taxes was due then.

Secretary Mnuchin wasn't telling the truth when he said "All taxpayers and
businesses will have this additional time to file and make payments without
interest or penalties."

I had to take a risk to visit CPA and prepare taxes by the March 16th
deadline, and so did nearly every other small business in America.

(California has a payment deadline of December 31st for businesses!)

~~~
pwned1
Only partnerships and S-Corps have tax return due dates on March 16. Those
entities don't pay taxes.

~~~
chrisweekly
S-Corps do pay taxes. Quarterly.

~~~
pwned1
The shareholders pay taxes. First quarterly due date is (was) April 15.

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0x8BADF00D
Everyone here should be extremely nervous about the future of our country.
Congress and the President are seriously considering helicopter money, which
will ruin the dollar and send us into hyperinflation. It’s not rooted in
reality. Who are we borrowing from? The surplus nations of the world will
divert their surpluses domestically due to COVID-19, not by buying US
treasuries and holding onto dollars. The only reason the dollar is going up is
due to people trying to get out of dollar denominated assets.

If anyone here wants to get ahead of this, please at least consider buying
silver. The dollar will become worthless.

~~~
quartzite
Not sure why you're being downvoted. We have massive debt and our Federal
Reserve is now resorting to buying treasuries again but in spite of that
yields are rising! This should disturb everyone. Helicopter money won't
necessarily cause hyperinflation but it will cause some inflation along with
massive new debt.

Here's a reality check: MMT and related ideas are nonsensical. They cannot
work. They will destroy economies where they are implemented.

~~~
TheGrassyKnoll
Treasury Yield 10 Years (^TNX) NYBOT - NYBOT Real Time Price. Currency in USD
0.9380 -0.1810 (-16.18%) As of 2:59PM EDT.

    
    
      Yields are rising ? 10 year notes under 1%. They're talking about negative rates.

