New tax payment deadline for 2019 Federal tax filing resulting from Covid-19.

The IRS announced that the April 15 filing deadline for 2019 taxes has been extended to July 15. Taxpayers will also have until July 15 to pay any tax that would otherwise be due on April 15 and to make a 2019 contribution into an IRA.

You won’t need to file any extension to take advantage of this date. However, if you want to file later than July 15, an extension will be required. Of course, if you’re expecting a refund, you can file as soon as you’d like, and the IRS expects to issue refunds within 21 days. You can still file electronically and will usually get your refund even earlier.

The IRS has set up a special page for information regarding their response to the COVID-19 emergency. You can find that here. This situation is very fluid and we expect that a stimulus law when finally enacted will include other tax changes that should be considered.

The IRS action does not directly affect state tax due dates although it can be expected that these will follow. In Pennsylvania, for example, the extension to July 15 was announced March 21*.

We will try to keep you informed of changes that we think might be important to you. You should still check with your tax advisor for tax advice, as available.

We know that this is a stressful time for all of our clients, and we at Janney are committed to giving you reliable information as we become aware of it that may help ease your concerns. Your Janney Financial Advisor, aided by our planning resources, can help you decide what’s best in your situation.

*Pennsylvania Extends Personal Income Tax Return Filing Deadline to July 15, 2020 - https://www.media.pa.gov/Pages/Revenue-Details.aspx?newsid=307

This information is effective as of the date this document was published, 3/26/2020. Please visit https://www.irs.gov/coronavirus for the most current information from the IRS for application to your particular tax situation.

Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

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Michael Repak

Vice President & Senior Estate Planner

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