NASE CEO Suggests: “Aim to Complete and File Your Tax Returns by the Original April 15th Deadline, but More Time is Available if You Need it or are Impacted By COVID-19”
DALLAS, TX – With the coronavirus (COVID-19) pandemic impacting every sector of our economy, the Trump Administration has just announced that the U.S. Treasury and IRS will extend both the April 15th tax filing deadline and any tax payments by 90 days to July 15th this year on up to $1 million in income. In reaction, Keith Hall, the president and CEO of the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-businesses, welcomed the relief, but also encouraged the small business community to aim to “complete and file your 2019 tax returns by the original April 15th deadline, if possible, but know more time is available if you need it or are impacted by COVID-19.” NASE has developed a COVID-19 resource page for small businesses impacted by the virus.
“The COVID-19 pandemic is affecting every sector of our economy, especially those in our small business community,” said Keith Hall. “We applaud all continuing efforts in working on a host of financial support ideas for those impacted by the current situation. We encourage small business owners and entrepreneurs to complete and file their 2019 tax returns by the original April 15th deadline, if possible. Timely filing of all tax documents will allow business owners to receive any expected refunds which can be very helpful in this time of crisis. But, you now can have more time to meet those tax obligations.
“Given the public health emergency, it is good to know that the IRS will now allow for the delay in filing and making tax payments without interest and penalty for so many who have been negatively impacted. However, the July 15th deadline only impacts federal returns and small businesses should check individual states and municipalities for guidance on filing and payment options.”
The extension includes a deferment in both the 2019 tax filing deadline and tax payments to July 15th. For more information, please visit NASE’s COVID-19 resource page.
For additional information, visit www.IRS.gov.
Tax Filing Key Updates & Reminders
- The new Qualified Business Income Deduction will benefit most small business owners providing a deduction of up to 20% of net business income.
- A doubling of the standard deduction, which is $12,200 for single filers and $24,400 for married couples.
- The reduction or elimination of specific deductions such as for moving expenses or the unlimited state and local tax deductions known as SALT deductions, which are now capped at $10,000.
- A streamlined, standard home office deduction is available.
- The standard mileage rate for business use of an automobile is 58 cents per mile for 2019, up from 54.5 cents last year.
- Limits for retirement plan contributions such as SEPs, IRAs and 401(k) plans may have changed for your situation.
- A lower individual rate, which is where most self-employed small businesses file.
- The healthcare individual mandate penalty is officially repealed.