By Kirby Ott, MBA, Managing Director, & Ashley C. Martin, CFP ®, MBA, Associate Director, Matter Family Office
As you are likely aware, the federal income tax filing due date has been automatically extended from April 15, 2020 to July 15, 2020. The automatic extension also applies to your 2020 first quarter estimated tax payments. A few things to know about this extension:
- The deferral of the 2019 payment due and first quarter estimated tax payment is without penalties and interest, regardless of the amount owed.
- This deferment applies to all taxpayers: individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
- The automatic extension announced at the federal level does not apply to all states; however, all states with a personal income tax have extended their April 15, 2020 due dates. Most states have matched the federal deadline of July 15, 2020, while seven states have communicated different deadlines (we will manage all of these moving parts on your behalf).
HOW IS YOUR MATTER TEAM PROCEEDING?
We are moving forward as we normally would by coordinating the flow of documentation and communication of relevant tax items to your preparer. While the timeline has adjusted, we are not delaying any of our activities in supporting your family’s tax process.
If we may ask, as you continue to share tax documents that you receive directly, please be careful and send them in a secure manor. Best practice is to share documents either through the Tax Preparer’s portal, or our Matter portal. If you have any questions, always feel free to reach out to someone on your Matter team for additional information or direction on how to do this.
FREQUENTLY ASKED QUESTIONS
Are my 2020 second quarter estimated payments also deferred?
Clarity has not yet been provided as it relates to 2020 second quarter estimated tax payments currently due June 15, 2020. We will continue to monitor this and, of course, will keep you informed.
Do we need to file an extension or any forms with the IRS or states by 4/15?
You do not need to take any actions for this automatic federal tax filing and payment relief (note that this also applies for states that have adopted the July 15, 2020 deadline).
Are 2019 contributions to qualified plans also extended to July 15, 2020?
Yes, 2019 contributions to an Individual Retirement Account, Roth IRA, or Health Savings Account are also extended.
Are Foundation or tax-exempt organization tax returns also deferred?
At this time, the May 15, 2020 due date for foundations and tax-exempt organizations has not been changed.
This report is the confidential work product of Matter Family Office. Unauthorized distribution of this material is strictly prohibited. The information in this report is deemed to be reliable but has not been independently verified. Some of the conclusions in this report are intended to be generalizations. The specific circumstances of an individual’s situation may require advice that is different from that reflected in this report. Furthermore, the advice reflected in this report is based on our opinion, and our opinion may change as new information becomes available. Nothing in this presentation should be construed as an offer to sell or a solicitation of an offer to buy any securities. You should read the prospectus or offering memo before making any investment. You are solely responsible for any decision to invest in a private offering. The investment recommendations contained in this document may not prove to be profitable, and the actual performance of any investment may not be as favorable as the expectations that are expressed in this document. There is no guarantee that the past performance of any investment will continue in the future.