The impact of the July 15 tax deadline extension

Miller and Company Founder Paul Miller joins Yahoo Finance’s On The Move to weigh in on how the tax deadline extension to July 15 will impact individuals and businesses.

Video Transcript

ADAM SHAPIRO: Welcome back to Yahoo Finance. Let's talk about taxes as part of our Taxes Made Simple segment brought to you by TurboTax.

We welcome Miller and Company Founder Paul Miller. And, Paul, I want to talk about deferring tax payments. Tell us the latest.

PAUL MILLER: The latest is, this morning, New Jersey just announced that they're going to line up with New York state and the federal government. All payments now went from April 15 to July 15, whereupon, you can get an extension, but your payment that was due in April is now due on July 15, with no interest, no penalties. Just a three-month extension.

ADAM SHAPIRO: So I thought that-- you know, on a grander scale, let's look at federal deferrals, because I thought you could always defer your payment when it was an August 15 due date.

PAUL MILLER: No, you can't-- you can extend, but the payment is always due. And when you extend, you extend with interest and penalties. Right now, the government has moved the April 15 deadline to a July 15 deadline for almost all filers. And every day, it's fluid information, so the governments are changing. Like New Jersey initially, up to this morning, extended from April to June, and now extended it from June to July 15.

ADAM SHAPIRO: And individual taxpayers who owe up to a million dollars in federal taxes-- I hope everyone watching one day falls into that group-- they can defer paying until July 15, corporations up to $10 million. All you have to do is file your taxes. And then what happens?

PAUL MILLER: You don't even have to file. You have an automatic extension right now. With an automatic extension right now, on July 15, you would file an extension for another three months. That gets you to October 15. But the payment is due on July 15.

ADAM SHAPIRO: What do you think about this decision to go this far? Should it be perhaps even further than July?

PAUL MILLER: You know, it's interesting, Adam, right now, there's-- an interesting problem right now is, they did defer your first estimated tax payment, so I'll give you a little bit of the confusion. Your first estimate that's due on April 15 has been moved to July 15. Your second estimated tax payment is due on June 15.

So it's really like the IRS really hasn't figured it out, and the states haven't really figured it out. So you're like, wait a second. My April 15 payment is due in July, but my June 15 payment is still due in June. So I think they're going to have to think about that June 15 payment and maybe figure out how to move that to maybe August or give some kind of break, because I don't think people will be ready even in July.

ADAM SHAPIRO: We hope the government, whether it be state or federal, are listening. Paul Miller, founder of Miller and Company, thank you for being here on Yahoo Finance.

PAUL MILLER: Thanks for having me.

ADAM SHAPIRO: More for everybody right after this.

PAUL MILLER: Buh-bye. Thank you.