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2020 tax estimates

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Level 1

I have not seen anything about the 2nd 2020 tax estimate which is due 6/15.  Has it been delayed also?

 

iolamm

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7 Replies 7
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Level 15

No.  Until changes are announced, 6/15 stays.

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Still an AllStar
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Level 7

June 15th stays, 1st qtr is July 15---pardon my spelling rbynaker just posted IRS response to Covid-19 a few discussions above.  please EVERYONE read so we can stop repeating all the same answers and questions

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Level 10

Okay, so follow the bouncing ball with me . . .

In a normal year, say I owe $4,000 in ES payments.  If I pay $2,000 as the 1Q-ES on 4/15, skip the 2Q-ES and pay $1,000 each on time for 3Q and 4Q, then all of my estimates were timely and no penalty.

So then wouldn't it stand to reason that I could now make a $2,000 1Q-ES payment on 7/15, skip the 2Q-ES and pay the others on time?

You can't tell me we're not having fun yet!

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Level 15

@rbynakerIn your example, you'll owe on 2nd quarter from 6/15 to 7/15 [for the $1,000 that would otherwise be due on 6/15, which you were going to frontload with 1st quarter].

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Still an AllStar
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Level 15

I can see an argument where your scenario may apply though but that wouldn't be a run of mill kind of case and would be purely academic.

If you have a taxpayer who earns 1/2 of the income in Q1 but has no income in Q2 and chooses to compute F.2210 penalty by annualization, you'd have $2,000 due in Q1.  Since the deadline for Q1-ES is now postponed to 7/15, which skips over Q2 payment and the taxpayer has no additional income on which ES-tax would be due in Q2, the taxpayer should technically not owe any penalty for 6/15 to 7/15 because that Q1-ES tax payment to be made on 7/15 would be deemed timely. 

But how likely will that actually happen?  Most likely not.

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Still an AllStar
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Level 10

@itonewbie wrote:

I can see an argument where your scenario may apply though but that wouldn't be a run of mill kind of case and would be purely academic.

Oh I agree we're purely academic at this point.  We're in uncharted territory.  The rules (as we know them today) are likely to change anyway if Congress ever gets their act together (after yesterday's "politics as usual", I didn't bother following anything that might have happened today.)

 

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Level 15

Agree.  No point spending time until they have something (more) concrete.  And you'd think they'd come to an agreement yesterday (although it's not unexpected from how it all sounded over the weekend).

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Still an AllStar