Duluth business benefits from tax filing extension

Ryan Juntti
Updated: July 08, 2020 10:25 PM

Time is running out if you haven't filed your federal taxes yet, as the deadline of next Wednesday is fast approaching.

It was previously extended from April 15 to July 15 to give businesses payment relief during the COVID-19 pandemic.

Because of the extension, Anna and Nathanael Bailey, owners of Bailey Builds art shop in West Duluth were able to file their taxes on April 29. They say the extension gave them some much-needed flexibility.

"It was just great to know that we had that one less burden to carry,” said Nathanael Bailey.

The extension meant the Baileys, who already had to deal with bills and other deadlines, had one less thing to worry about.

“It just made it just so much less stressful to just have one less thing on our shoulders to think about financially, especially during the whole stay at home order and people weren’t out shopping so that affected our retail sales,” Nathanael Bailey said.

It also allowed them to spend money on other things such as groceries versus having to worry about paying taxes. The Baileys say they are in a better situation because of the tax filing deadline being extended.

On the other side of the coin, tax preparation firms like Serenity Tax & Bookkeeping Services LLC have been staying plenty busy during the pandemic. 

“Right when COVID hit, we were working on our partnerships. Corporate tax returns because the due date was March 15, and then all hell broke loose,” said Serenity Tax & Bookkeeping Services LLC owner Deni Lorenzi.

Lorenzi says her office has been dealing with an increasing number of people asking about loans, grants, and stimulus checks, which she says has been different than in years past.

"Our office did nothing but answer the phone for three weeks straight, and it was pandemonium because everybody wanted to know what they could do, what they couldn’t do, what the parameters were, who to get loans from," Lorenzi said. it was an amazing mess,” she added.

Now only one week from the tax filing deadline, she says her office is still working on completing tax returns. She says they have over 800 completed, with the hope of having 1100 done by October.

Lorenzi says for anyone who is yet to file their taxes, to immediately file an extension.

She wants to remind the public that even with an extension, taxes still need to be paid.

Credits

Ryan Juntti

Copyright 2020 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved

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