Tax Tips During the Coronavirus Pandemic

With the 2020 tax deadline shifting to July 15, you may have some questions about how and when you should file your personal and business taxes. We’ve gathered a few tips on how to handle filing during the coronavirus pandemic: 

 

If you are due a refund, file ASAP

Even though the tax deadline is extended, it will be beneficial to file for your refund if you are currently facing financial hardship. The sooner you file, the sooner you will receive your state and federal refund. The IRS has already processed almost 60 million refunds as of March 13, issuing an average check of $2,973. 

 

If you are filing on your own, check out our blog that discusses how to avoid common filing mistakes. 

If you owe money, wait to file 

If you are, in fact, facing financial hardship but know that you will owe money after filing, it may be best to wait to file. This is the main reason why the deadline was extended. All taxpayers and businesses have this additional time to file and make payments without interest or penalties. 

 

If you need more time than the provided deadline, you can also file for an extension. To learn more, read our blog

If you’re not sure, hire an expert 

This is especially important if you are filing for a small business. While the IRS does not require the use of a professional accountant when filing business taxes, there’s a reason why so many organizations swear by them today. If you’re a small business owner, you’ve probably been there at some point – it’s tax season, and you are considering doing your taxes on your own instead of outsourcing help. The truth is that preparing your own taxes can be quite a tall ask for someone who’s also working around the clock as a small business owner. 

 

To learn more about how to choose a small business CPA, click here

 

At Hall & Company, we are an Orange County CPA firm based in Irvine committed to providing quality tax and accounting services along with sound financial direction to clients throughout Orange County, California. We offer business development consulting, audit, tax preparation, IRS Audit, retirement planning, business roundtables, estate planning, QuickBooks consulting, Interim Chief Financial Officers, and a full range of traditional public accounting services. If you would like to learn more about how we can help you and your business improve its accounting practices, reach out to our team. For more information on other accounting topics, check out our blog.