The federal tax deadline has been extended to May 17 and Arizona still has not decided what to do. The state also has not updated its tax code to match the Feds’. This could present some problems for filers. We talked about this with Tom Wheelwright/CPA & CEO, WealthAbility.
There are a couple of bills in the legislature right now about extending the deadline for Arizona as well. We asked why it has not been done. Wheelwright said the legislature has to file a conforming bill every year. He said that it is going through the legislature as fast as they can do it, but “they just aren’t that quick”.
If you cannot make the state and federal deadline, there is an extension people can file. He said you can extend it until October 15. Although, he did explain you have to pay by May 17. You cannot extend payment, only the extension. Wheelwright said business owners and investors do this almost every year.
We also talk about quarterly estimates. Wheelwright says the quarterly estimate will still be due April 15. If you miss the May 17 deadline, you owe taxes, but you still can’t pay what you owe, Wheelwright said you will have penalties and interest. He also said you can arrange a payment plan with the IRS in most cases. He encourages people to file the extension because the failure to file a penalty is a lot more than the failure to pay a penalty.
Wheelwright said there is already a delay in refunds. He said the IRS is as much as six months behind in opening mail. If you filed an amended return, it is very delayed. Handwritten checks are also very delayed. Wheelwright said if you want to get your refund faster than file electronically and they will deposit it into your bank account. Wheelwright said the electronic filing is the best way overall, “you just have to decide whether you are willing to give the government your bank account.”
Lastly, we talk about the stimulus check and how it plays into the filing of taxes. Wheelwright said the stimulus checks are tax credits. He also said they were just an advanced payment, and there is no net effect on your tax return. Wheelwright said many people are confused.