2020-09: Updated responses to your extension questions - Spidell

2020-09: Updated responses to your extension questions


Here are some common questions we’re getting on our Message Board (www.caltax.com/forums/forum/message-board/). If you have more questions, don’t hesitate to post them — and read what others have posted.

Do fiscal-year entities qualify for automatic extensions? What about the March 15 filing deadline?

The guidance released by the IRS specifically addresses April 15 filing and payment deadlines. There is nothing mentioning other deadlines, including fiscal-year entities with original due dates or extended due dates that do not fall on April 15, 2020.

If I want to extend beyond July 15, when am I required to file the extension request?

This has not been addressed in the IRS guidance. We believe the extension should be filed by July 15, 2020, but without additional guidance you may want to file extensions by April 15, especially if there are tax benefits that could be lost without filing an extension.

If my client scheduled an auto-withdrawal for April 15 when we e-filed their return, will that be delayed?

The IRS has not made any announcements about delaying these auto-withdrawals. However, there is a method for taxpayers to cancel the payments. Once the return has been accepted by the IRS, the taxpayer may call IRS e-file Payment Services 24/7 at (888) 353-4537 to cancel the payment. The IRS recommends that you wait 7 to 10 days after your return has been accepted before calling, and notes that cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date. We recommend cancelling the scheduled payments as soon as possible to avoid any problems. The taxpayer should then go to www.irs.gov/payments/direct-pay to schedule a payment for July 15.

The FTB has not yet provided information on this topic, but we do expect a response from them soon.

Sign up for our COVID-19 and Filing Extensions: What Tax Pros Need to Know webinar and get details of the Families First Coronavirus Response Act and extended tax season deadlines. Click here to register online. First webinar sold out; second webinar just added!