Independent Pharmacy Accounting, COVID-19

Federal Tax Filing and Payment Extensions to July 15, 2020

With many questions surrounding the extended federal tax filing and payment extensions to July 15, 2020, especially with many state deadlines differing, this video offers a few insights on what pharmacists should know.

Ollin Sykes, CPA.CITP, CMA, provides a brief overview of the extensions and how they apply to filing, paying taxes owed, estimated tax payments and certain tax-deductible contributions.

Sykes & Company, P.A. is working with these extensions to focus on pharmacy accounting services and to advise independent pharmacies on new deadlines and their changing business circumstances. Please contact us with any questions about your pharmacy business.

If you prefer to read this content, the video transcript is below.

Obviously this is brand new, and this has not happened before in my career. And this does, as we understand it currently on a federal basis, extend out monies that are due for any 1040 payments that are due for 2019, and extends your first and your second quarter estimates for 2020 to July 15, without interest or penalty.

And automatically you do not have to file a separate extension form to get this automatic approval, because it becomes automatic, just like filing on April 15 or before is automatic. Now in some cases, the states, it’s a different situation. I know in my state they’ve come out with, which is North Carolina, they’ve just come out and said that it’s going to be automatic, too, until July 15. Penalties won’t apply, but interest will. Every state is different, so you’ll need to check the resources, Google your state department of revenues to see what has occurred there.

I know in California, for example, I noticed recently it says their due date is June 15. I’ve also had questions about does that extend either HSA or IRA payments, and we’ve seen nothing in writing yet from the IRS with respect to that being extended, so I would suggest right now you err on the side of caution and not do that.

So this is obviously a very hot topic right now. It’s taking the pressure off a number of pharmacists. It’s taking some pressure off our office function right here with everybody working remotely as we are. This is obviously part and parcel of history. So if you have questions, please let us know.

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