The 2020 Q1 and Q2 estimated payment deadline is quickly approaching on July 15th, 2020. Many of you have already received your 2019 tax returns and 2020 estimates, and the rest are forthcoming. Typically, we set most clients up under a prior year safe harbor where 110% of prior year tax is paid in throughout the year. You are allowed to pay estimates based on the lower of 110% of prior year Tax or 90% (or 100% at certain income limits) of current year tax. Considering the possible negative impact COVID 19 may have had to your business and individual Income, please let us know if you would prefer us to revisit your estimates based on current year data to reduce your quarterly estimates and ensure you are able to retain as much cash as possible as the economy recovers.
Please reach out to your Siegfried Advisory Relationship Coordinator if you would like to discuss your 2020 estimate plan or with any other questions. Additionally, if you are not currently a tax client but require tax assistance, please reach out to your Relationship Coordinator. Kindly note that this message does not constitute particularized financial or tax advice.