Important information on the impact of Covid-19 for your tax processing

If your return has already been filed and you are expecting a refund. There is nothing you need to do.  The IRS and state departments of revenue are still fully operational for refund processing.

For everyone else the tax return deadline has been changed to July 15.  This applies to both the federal return and many state returns including Arizona and California.

If we have your return information it is still being processed.  The normal lag time is around three weeks from the time we receive everything from you.  However, the number of calls and emails asking for tax advice during these difficult times has greatly increased so the delays may be longer.  For those who want to be finished, our goal is still to get done before the original April 15 deadline.

If you have an upcoming appointment.   We are currently still seeing clients but that is subject to change if needed.  I highly encourage anyone with concerns and especially those in high-risk groups to either postpone the appointment or change it over to a phone call.  With tax-day delayed there’s no penalty for waiting if you owe taxes.  There are a number of ways to send us information digitally and for those more comfortable with paper documents the mail is working well.  I recommend sending it priority so it can be tracked.

If you owe taxes.  With the deadline changed to July 15, this means you do not need to pay any tax due until then.  If you owe quarterly taxes the 1st quarter April 15 payment is due July 15 but the 2nd quarter June 15 payment is still due on June 15.  This means the 2nd quarter is due before the 1st quarter.  If that sounds confusing it is.  What this really means is if you pay quarterly taxes, you’ll want to have your return finished well before June 15 so we know what you should pay.

If you have auto-debit set up for the taxes you owe.  At this point it is unknown if that date will change but one IRS contact said she did not think they could stop it automatically.  You can cancel the auto debit for the IRS by calling 888-353-4537.  There is no universal way to cancel a state tax payment.  This is a fluid situation so you may want to wait another week for more guidance to come out before taking action on this.  If you do cancel the payment this means you will need to mail a check or pay online by the new due dates.

Our business continuation.  Like most businesses there are plans to keep running if we have to stay in our homes.  If this happens any returns waiting to be picked up will be mailed and all in person appointments would be changed to phone.  We will still be available by phone and email and the return processing will continue. Completed returns would either be mailed or sent digitally via DocuSign.   As I’m sure many of you are experiencing, operating this way is not ideal but rest assured we have the systems in place to keep working.