Version 1.11 for 1040 is now available for TaxAct 2019 Professional Federal Edition. This update includes:

  • Changes required due to the Payment & Deadline extension moving to 7/15/20
    • This includes being able to select an automatic withdrawal date post 4/15/20

Note: Similar updates for Federal 1120, 1120-S, 1041, and 990 are tentatively planned for next week. State Editions updates will also be available over the next couple weeks.

What these changes mean for 1040 federal returns:

  • Federal 1040 tax returns are not officially due until July 15, 2020.
  • Taxpayers are subject to late filing penalties if the return or extension isn’t filed by July 15, 2020.
  • If your client owes taxes, they don’t have to pay until July 15, 2020. If they can’t pay by then, file an installment payment agreement request by July 15, 2020.
  • Tax payment penalties and interest will not be added before July 15, 2020.
  • The extension deadline remains October 15. That means that instead of extending your client’s return for six months, extensions this year will cover a three-month period. As always, filing an extension delays only the time to file – taxpayers still need to pay by July 15, 2020.

State return information:

Tax Payment Withdrawal – Can the withdrawal date entered be changed?

  • Once the return is accepted, information pertaining to the Direct Debit payment, such as the account information, payment date or amount, cannot be changed.
  • If changes are needed, the only option is to cancel the payment transaction and choose another payment method.
  • Taxpayers will need to contact the IRS or state tax agency to change your their payment (they may or may not grant the request). See Tax Owed and Estimated Tax Payments – Direct Withdrawal: Cancellations, Errors and Questions for more information.

Estimated Payments – Are estimated payments for 2020 also extended?

  • As of now, just the first payment (due April 15, 2020) is extended to July 15, 2020. See Estimated Tax Payments – Electronic Funds Withdrawal for more information.