As I'm sure you are all aware, there have been a number of developments in the ongoing COVID-19 pandemic and federal, state, and local government responses this week. The biggest news for us is that the IRS confirmed this evening that the individual and corporate tax return deadlines and payment deadlines will be extended from April 15th to July 15th for all taxpayers.
This is an unprecedented action on the part of the federal government to provide immediate liquidity to taxpayers in the face of the COVID-19 threat and to relieve the pressure on taxpayers and service providers of the April deadlines. We're still planning to continue to work hard to get your returns done as soon as possible, but especially in light of this change, we're planning on all returns taking longer than they typically would -- and we want to balance getting every return done timely with our team's wellbeing during this stressful time.
Given these new developments, here is an update on how we'll be working under toward this new deadline to ensure we're prioritizing those clients who need our help filing their returns the most. Our priorities will be:
First Priority: Any clients who expect to receive refunds from their Federal or State taxes, or who need to know their tax liabilities so they can spend funds otherwise reserved in their tax savings accounts. This will ensure that we can get these dollars into clients' pockets in the midst of the economic uncertainty of COVID-19.
We are working proactively to identify clients who we think may receive refunds or need to use their tax savings accounts -- but if you fall into this category, please reach out to us immediately and let us know.
We'll work with you to make sure we have everything we need in order to complete your returns as soon as possible.
If we're still waiting on information from you, please send it to us as soon as possible so that we can get your returns underway.
Second Priority: We will also prioritize returns for any clients who need them for financing or other external purposes, especially as related to obtaining financing related to emergency needs.
If you fall into this category, please contact us immediately so that we know that you need priority treatment.
We can also work with you on alternatives (including an explanation letter to your lender stating that the returns are not yet due and that they are in progress -- this can often allow lenders to proceed without the returns).
If we do need to complete your returns in an expedited manner, we'll work with you to make sure we have everything we need to complete them quickly.
All Other Returns: We will work on all other returns in our typical fashion -- in the order that we receive all of your documents and other materials needed. We still anticipate being able to complete all of these in a timely manner, and well in advance of the new July 15 deadline. We will also be working on extended business returns (Partnerships, LLCs, and S-Corps), so that we can complete them before the July 15th deadline where possible.
If you haven't sent in your tax materials, please do so as soon as possible.
If there is something preventing you from being able to submit them (you can't access your records due to the COVID-19 quarantine, you don't have time to do them now), please reach out and let us know so we can work with you on a new target date.
We would still like to receive all tax materials from clients as soon as they are available, which will allow us to work on your returns as soon as we have time.
Bottom Line: Please keep us informed of what you need and when you think you'll be able to submit all of your information so we can complete your returns as quickly as possible. Rest assured that any tax balances you owe will not be due until July 15 -- we highly recommend that you take advantage of this interest-free loan from the IRS and hold onto the funds until closer to that date -- even if we file your returns sooner. This will allow you to weather any uncertainty that the next few months may bring.
We've also assembled the attached Coronavirus Relief Resources Guide, which has up-to-the-minute information on what federal, state, and local agencies are doing to help those impacted by COVID-19 in our communities. This focuses on Oregon, Washington, and California, as those states are where a majority of our clients are located. Please review the Guide -- we hope it will help to inform you about the resources that are out there for individuals, small businesses, employers, and employees -- and let us know if you would like to discuss any of the items we have listed or need our assistance in utilizing the resources that are available.
As the situation continues to develop, know that our Compliance and Advisory Team is constantly alert for new resources and government action that will impact you -- we'll keep you updated as we find out more, and we stand ready to assist you to ensure that you have the resources you need to weather this uncertainty. From our family to yours, we wish you the best in this trying time. Rest assured that we're up and running (remotely) and we're here to work together with you to navigate this storm. Thank you for your continued business, and don't hesitate to reach out to us at any time. -Adam