World Wide

Tax Filing Extensions Surge as Gold Prices Hit Record High

19.5 million taxpayers seek extensions; IRS grants 30 disaster extensions in 2023, interest rates and corporate moves impact markets.

By Athena Xu

4/12, 19:23 EDT
Abbott Laboratories
Bank of America Corporation
Blackstone Inc.
Barrick Gold Corporation
Goldman Sachs Group, Inc.
HSBC Holdings, plc.
Johnson & Johnson
JP Morgan Chase & Co.
Morgan Stanley
Newmont Corporation
Netflix, Inc.
Charles Schwab Corporation
Taiwan Semiconductor Manufacturing Company Ltd.
UnitedHealth Group Incorporated
Vertex Pharmaceuticals Incorporated

Key Takeaway

  • 19.5 million taxpayers expected to file for an extension, with the IRS granting over 30 disaster extensions in 2023.
  • Gold prices hit a record; Newmont and Barrick Gold shares surge, while JPMorgan Chase shares fall after disappointing guidance.
  • Over 40 S&P 500 companies, including major financial firms and tech giants like Netflix, to report earnings next week.

Tax Filing Extensions Rise

The number of taxpayers seeking deadline extensions for their tax filings has seen a significant increase over the past two decades. This tax season, it is anticipated that 19.5 million individuals will file for an extension, a notable rise from previous years. The IRS has also granted more than 30 disaster extensions in 2023, up from 19 in 2022, due to various natural calamities such as hurricanes, wildfires, and snowstorms. Taxpayers in disaster zones receive automatic extensions for both filing and paying taxes, eliminating the need to file Form 4868. However, for those outside of these zones, while an extension to file can be obtained until October 15 by submitting Form 4868 by April 15 (or April 17 for Massachusetts and Maine due to state holidays), it does not extend the deadline for tax payments. Late payments incur a penalty of 5% on owed taxes for late filing, 0.5% for underpayments, and an 8% interest compounded daily.

Financial Markets and Corporate Moves

In the financial markets, gold reached a new record, with significant surges in shares of gold miners Newmont and Barrick Gold. Fitch downgraded Chinese sovereign debt due to concerns over public finances. Oil prices climbed above $90 a barrel amid fears of an Iranian strike against Israel. Consumer prices in March rose by 3.5%, prompting concerns over potential delays in interest rate adjustments. The first quarter of the earnings season saw mixed results, with JPMorgan Chase reporting disappointing interest-income guidance, leading to a decline in shares. In contrast, Taiwan Semiconductor announced an increase in its investment in Arizona, planning to manufacture advanced two-nanometer chips. Other notable corporate activities included HSBC's sale of its Argentina business, Blackstone's acquisition of Apartment Income REIT, and Vertex Pharmaceuticals' purchase of Alpine Immune Sciences.

Earnings Season and Economic Indicators

The upcoming week is crucial for the S&P 500 index, with more than 40 companies scheduled to report earnings. Financial firms constitute nearly half of these reports, with notable names like Charles Schwab, Goldman Sachs Group, Bank of America, and Morgan Stanley among those announcing results. Additionally, the Census Bureau is set to release its advance estimate of retail and food service sales for March, with expectations of a 0.4% month-over-month increase to $704 billion. The healthcare, pharma, and technology sectors are also in focus, with companies like Johnson & Johnson, UnitedHealth Group, Abbott Laboratories, and Netflix slated to report their quarterly results.

Management Quotes

  • Jamie Dimon, CEO of JPMorgan Chase:

    "Interest rates could hit 8% due to the federal deficit and geopolitical stress."