In a March 23 update, the IRS announced that they have extended the filing date for 2019 taxes to July 15, 2020. This is an addition to the payment extension which was already put into place.
Taxpayers can defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
Though you are not required to file until July 15, 2020, the IRS is still encouraging taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issues within 21 days.
With the unfortunate spread of Covid-19, people around the country are facing furloughs, cut hours, and even business closures. It is an uncertain time, and the government is offering some ease to those Americans concerned about being able to pay their 2019 tax bill.
While the filing deadline for individuals stands at April 15, 2020, income tax payment deadlines for individual returns are being automatically extended until July 15, 2020 for up to one million dollars of their 2019 federal income tax due.
This relief applies to all individual returns, including self-employed individuals. For C-Corporations, payments due on April 15, 2020 are automatically extended until July 15, 2020 as well, for up to ten million dollars of tax due.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.
Extensions until October, 2020 are still due by April 15, 2020. If an extension is not filed by the due date then the return must be filed by July 15, 2020 in order to avoid the failure to file penalty.
This relief does not apply to trust or estate tax returns.
The extension of time to pay also applies to any estimated taxes due on April 15, 2020. First Quarter estimated payments will be due July 15th. As of now, the due date for the Second Quarter estimated tax payments are still due June 15th.
Unsure about how this affects you? Give us a call at (720)432-9167.