New updates regarding Federal Income Tax deadlines and Virginia Income Tax deadlines (updated 03/20/20):
We are monitoring the developments of COVID-19 and its impact on Virginia business owners. We are experiencing such a rapid rate of change that we’d like to help you filter through the noise as more and more information is released. Our topic here: income tax filing extensions.
It was just announced today, Friday, March 20, that both our Federal income tax filing and payment deadlines are being extended to July 15. Previously, the extension was only for payments and for certain businesses and individuals, but the filing deadline remained the same. All of that is out the window. This extension applies to every business and every individual. If your usual deadline is April 15, it is now July 15 for both filing and payments. No penalties and no interest will accrue with that.
The best thing to do if you believe you’re owed a refund? File your taxes this weekend! Get that cash now and have it available for the essentials.
Regarding Virginia income tax, Governor Northam announced yesterday that the deadline for filing taxes remains May 1; however the payment deadline has been extended to June 1. There are some caveats with this. It applies to everyone; there are no income restrictions. But the big difference is that, while there are no penalties, interest will still accrue.
Here’s a recap of what we suggest…
- If you’re owed a refund, file now and get your refund.
- If you believe you owe and you have the means to pay the taxes now (and make sure you allow for your other expenses you’re going to have over the next couple of months) go ahead and pay those taxes, both federal and state, when you file at the May 1 deadline.
- If for you, like many people, cash flow is an issue right now, take full advantage of the tax filing extension.
This situation is evolving and we will continue to update you as more news becomes available. If you have questions in the meantime, you can follow us on LinkedIn. We will post regular updates via this blog, so check back regularly.