On March 21, the IRS extended the April 15 federal income tax filing deadline to July 15, to provide tax relief to those affected by the COVID-19 pandemic. This means that individuals, trusts, estates, corporations, and other non-corporate tax filers will now have until July 15 to both file their tax returns and make tax payments.
The July 15 extension is automatic and does not require filing additional forms.
It applies not only to 2019 federal income tax returns and balances due but also to 2020 federal estimated tax payments originally due on April 15. We have not received any information relating to the June 15 quarterly estimates, nor any guidance related to the extension of time to make IRA or HSA contributions.
In a previous notice, the IRS had limited the amount of payment that could be delayed, but IRS Notice 2020-18 states that there is no limit on the amount of the payment that may be postponed. Additionally, no penalties or interest will accrue until after the July 15 deadline. It is important to note that no extension is provided in this notice for the payment or deposit of any other type of federal tax or the filing of any federal information return. This relief is available solely with respect to federal income tax filings and payments, including payments of self-employment taxes.
The IRS noted that taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing the applicable Form 4868 or Form 7004. Many states are matching the IRS’s July 15 filing and payment deadline. Link to AICPA State Tax Filing Guidance
We understand that each taxpayer’s situation is unique, and to help you during these difficult days, our recommendation is to continue working toward the tax deadline as if it was still April 15. This will enable us to more quickly evaluate your tax position to determine what is most beneficial for you. For those who will receive a refund, we can file your return so you receive the payment as soon as possible. For those who will owe tax, we can proactively determine the amount and then plan to delay the payment until closer to the new deadline. While the urgency of the usual April 15th filing deadline has been eased with the extension, we urge you to submit your information to us as soon as possible.
We recognize that circumstances may make it difficult to proceed as you once intended, but we remain committed to working with you – even more so during these difficult times. If you have any questions, please contact your Whitinger & Company accountant. We continue to monitor the situation and will provide details on additional tax guidance as well as economic relief packages as new information becomes available.
Thank you for your continued support and loyal business as we all navigate these unique circumstances. To streamline communications with our team you can download the Whitinger Staff Contact List here.
Please reach out to your accountant with any questions or concerns you may have.
We are here and ready to help.
-Whitinger & Company