Tax Day Pushed to July 15

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In response to the ongoing COVID-19 situation, the federal income tax filing deadline has been pushed to July 15 from the standard deadline of April 15. This means you have an additional three months to file your returns and pay your taxes without being subject to interest or penalties.

This extension applies to federal tax filings only. While several states have followed suit and extended their filing deadlines as of this writing, we encourage you to verify filing circumstances in your specific state.

What Does This Mean for Your Tax-Advantaged Accounts?

The annual tax filing deadline coincides with:

  • Contribution Deadlines – You have until the tax filing deadline to make contributions for the 2019 tax year (if you haven’t already made your maximum allowable contribution). The 2019 contribution deadline has been pushed to July 15 in accordance with the filing extension. Click here to read more from the IRS.

  • Unrelated Business Income Tax (“UBIT”) – If your self-directed account earned pass-through income from an operating business or rental income from leveraged properties, you may have to file a Form 990-T on its behalf. Your account may also owe UBIT accordingly. We suggest you speak with a tax professional regarding this matter. (UPDATE - IRS guidance suggests Form 990-T filings are also subject to the July 15 filing deadline this year. Click here to read the IRS Notice.)

Please consult your accountant or tax professional for exact guidance on how the July 15 filing extension may affect your self-directed IRA, 401(k), or Health Savings Account. Our sister company, IRA Tax Services, can assist you with filing a Form 990-T and with other complex tax matters related to your account.

Although New Direction Trust Company does not provide tax or financial advice, please feel free to give us a call at 877-742-1270 or send us an e-mail at info@ndtco.com if you ever have questions about your account.

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