Federal Extended Deadline Rules:
The IRS has issued their final ruling on extending the April 15th tax deadline for both filing your taxes and making any tax payments to July 15th.
It is not necessary to file an extension to take advantage of this extended due date. It should be noted that it is our understanding that unless you file a formal extension for an October 15 extended date, your return along with payment will be due July 15.
• Although initially it was indicated that there was a $1,000,000 cap with regard to any tax payment due July 15, there is no longer any limitation, so payment of all balances due are now extended until July 15.
• Penalties assessed for the period from April 15 to July 15 will be abated automatically. However penalties associated with any underpayment of your prior 2019 estimated tax payments are not abated.
IRA and HSA contributions have also been extended until July 15. They are to be contributed by the original filing due date of your personal return, which is now July 15.
Your first quarter estimate will also be due July 15. Although we are assuming the second quarter estimates will also be extended until July 15, this has yet to be confirmed.
Vermont Extended Deadline Rules:
Vermont has finalized that income tax filing due dates for the following taxes have been extended from April 15, 2020 to July 15, 2020:
• Vermont personal income tax
• Vermont Homestead Declaration and Property Tax Credit Claims
This means taxpayers can file and pay these taxes prior to July 15, 2020 without any penalty or interest. This includes any 2020 estimated payments that were due on April 15th.
Although the filing deadline has moved, Vermonters can file their returns and claims any time before July 15.
How does this impact quarterly tax payments?
Your first quarter estimate will also be due July 15.
At this time the second quarter estimate due date is still scheduled as June 15. We will update you on the status of this as information is available.
How does this impact IRA and HSA contributions?
IRA and HSA contributions have also been extended until July 15. They are due when the original filing date of your personal return is due which is now July 15.
With offices in Williston and Rutland Vermont, Davis & Hodgdon Associates CPAs has been assisting Vermont’s residents and entrepreneurs with their tax planning and strategizing needs for more than 30 years. Call our office at 802.878.1963 (Williston) or 802.775.7132 (Rutland) today.