COVID-19 (coronavirus) has turned the world upside-down in recent months and in response the Internal Revenue Service extended the income tax payment and filing deadline from its traditional April 15th due date to July 15th, 2020 in Notice 2020-18. We break it all down FAQ style below:
What is the income tax return filing due date?
July 15th, 2020 is the return filing due date for individual, trust, and corporate calendar income tax returns normally due April 15th. Fiscal year filers with a tax year ending in 2019 and an extended due date of April 15th, 2020 are being allowed additional time to file as well, with a now extended due date to July 15th, 2020.
When are income tax payments due?
Income tax payments normally due on April 15th, 2020 are now due July 15th, 2020.
What payments are covered?
The relief is solely with respect to Federal income tax payments, including payments of tax on self-employment income, due on April 15th, 2020. This includes balances due with 2019 returns and first quarter 2020 estimated income tax payments.
Will there be interest or penalties on late payments?
Interest and late filing and payment penalties will be waived on payments and returns normally due April 15th, 2020 and filed and paid by July 15th, 2020.
What are the qualifications for the extension?
There are no income or tax due limitations and no requirement of being sick or quarantined due to COVID-19. The relief applies to all income tax payments and returns normally due April 15th, 2020.
How does the extension work?
If you file your tax return and make any necessary payments by July 15th, you will automatically avoid interest and penalties that would normally accrue when filing and paying past April 15th.
How does this affect the regular filing extension request?
If your return would have been originally due on April 15th but now is due July 15th and you still need more time to file, an extension request can be made on Form 4868 for individuals and Form 7004 for C corporations by July 15th, 2020.
Filing for this additional extension will extend your due date until October 15th, 2020. Reminder that this is an extension of time to file the return but not an additional extension of time to pay any tax due. Make sure to estimate and pay in any tax that will be due with the return once filed.
What if payment isn’t made by July 15th?
Interest, penalties and additions to tax will begin to accrue on July 16th, 2020.
What About Other Types of Returns or Due Dates?
The extension of time for making April 15 federal tax payments does not apply to other types of federal taxes – such as payroll and excise taxes. In addition, the only returns covered by the extension to July 15th are Federal income tax returns with an April 15th, 2020 due date; information, gift, and estate returns, as well as tax returns due in May and June, and related tax payments, will need to be filed and paid as normal.
What is the due date for 2019 HSA and IRA payments normally due on April 15th?
Contributions to HSAs and IRAs for the 2019 tax year can be made up until July 15th, 2020.
What about the talk of only extending payments and only for certain taxpayers and amounts?
Initially, the IRS announced only payments up to certain amounts would be automatically extended but not the return itself. Lawmakers, taxpayers, and tax professionals made it clear this was confusing and not good enough, so the IRS responded with simply moving the April 15th filing and payment due date for income tax related returns and payments. The Notice 2020-17 that contained the initial guidance was superseded by Notice 2020-18.
How does this affect my state returns?
Be on the lookout for your state’s response and potential deadline extension, as this extended due date announced by the IRS relates only to Federal return filings. Information is available here and here.
What impact is there on 2020 estimated tax payments?
The first quarter estimated tax payment due date of April 15th, 2020 has also been extended to July 15th, 2020. While it would seem intuitive to also move the second quarter due date of June 15th, this currently has not been done - Q2 income tax estimated payments are still due June 15th, 2020!
Last Updated: 03.24.20