With the postponement of tax payment due dates, many were relieved in April. But, the time has come to pay up. Here’s what you need to know for July 15:
Federal and TN tax returns for 2019 must be filed or an extension must be filed.
Regardless of whether you file a return or an extension, federal and TN payments for 2019 must be made.
First quarter federal and TN estimated payments for 2020 normally due on April 15 are due on July 15.
Second quarter federal estimated payments for 2020 normally due on June 15 are due on July 15 (TN payments were due June 15).
Coming up short on cash? Talk with the CPA that does your taxes to see what the priority of payments is for you – it's different for each situation. Your CPA should also be able to give you what your amounts for 2019 need to be and the estimated for 2020. You can set up payment plans with the IRS for 2019 if needed – however, there will be interest charged.
Third quarter payments are still due on Sept. 15. Start saving for that payment now and any amounts above you couldn’t pay. Look at cutting expenses, adding a new revenue stream, or increasing sales. Open a new bank account and regularly move money over to this account to save for the next payment.
Need help managing your cash? Contact us to help you set up a plan.
