Last week the Treasury Secretary gave all US taxpayers a break by extending the payment due date for taxes owed with their 2019 tax filings. He then delayed the tax filing date to that same date, July 15, 2020. During this economic toil it made perfect sense to allow US taxpayers to focus on far more important issues facing themselves.
One additional benefit of this move is that the deadline for making an IRA contribution for 2019 has also been extended (which would include opening an IRA). The IRS rule for the contribution deadline is not fixed to a certain date, but is rather fixed to an event, the filing of an individual’s tax return (not including extensions). Because the government has moved the filing deadline to July 15th, it has also provided an additional 90 days for US taxpayers to make their IRA contributions.
For more information on retirement planning strategies, as well as other COVID-19 tax initiatives, please contact your local UHY professional.