IRS Extends Tax Filing, Payment Deadlines to July 15

IRS Extends More Tax Deadlines to July 15

4/13/2020

With shifting deadlines for filing and paying taxes, things can get confusing. 415 Group Supervisor Evan Hudson, CPA, explains the changes that have happened in light of the coronavirus pandemic.

Evan R. Hudson

CPA

“Tax Day”, as we all know it, has been automatically extended from April 15 to July 15, 2020. The IRS has provided this much needed relief to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers.

This means you will now have until July 15 to file and pay your 2019 taxes. No forms need to be filed to receive this extension. If you find that you will not be able to complete your taxes by July 15, you can request an extension of time to file (but not pay) your taxes until October 15.

While no action is required until July 15, everyone’s situation is different. We recommend reaching out to your tax advisor to see how these changes impact you. If you are anticipating a refund, you will likely want to file as soon as you are able to, since a refund would help many taxpayers right now.

Some other areas where you may want to reach out to your tax advisor for guidance include:

2020 Estimated Tax Payments: The relief also includes an extension of time to pay some of your 2020 estimated taxes without being subject to penalty or interest. Taxpayers will now have until July 15 to pay their 2020 Q1 and Q2 estimated tax payments. These payments otherwise would have been due on the 15^th of April and June, respectively. If you will be filing an extension of time until October 15 to file your 2019 taxes, consider including your 2020 Q1 and Q2 estimated tax payments with your 2019 extension tax payment. Any overpayment of 2019 tax can be credited to 2020 when your 2019 tax return is filed. Additional payments can serve as a cushion against any unexpected changes to income for 2019.
State and Local Filings: While most states (including Ohio) have extended their due dates for filing and paying taxes, you will want to make sure that none of these due dates fall through the cracks.

The everchanging landscape of the tax world is all the more reason to be in contact with your trusted tax advisor. At 415 Group, we’re always available if you have any questions or concerns. Reach out today.

The April 15 federal income tax filing due date has been moved to July 15, the U.S. Treasury Department and IRS recently announced. Here is what you need to know:

The due dates for all tax payments normally due April 15 have been pushed back 90 days to July 15, regardless of the amount owed. This 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.
Payments that can be extended to July 15 include income tax payments and self-employment tax payments that are associated with the 2019 taxable year. Also extended are estimated income tax payments for the 2020 taxable year.
The 90-day extension from April 15 to July 15 is automatic. No additional forms must be filed to receive the 90 day extension.

Some thoughts

While the federal government grants you an additional 3 months to file and pay your 2019 taxes, you may wish to still file your tax return by April 15. Here are some thoughts on different situations.

You anticipate a refund. If you are expecting a refund, file your tax return immediately. A refund right now can come in handy.

An extension might still make sense. This change automatically extends everyone's due date to July 15. But you may still wish to file a tax extension to move your tax return date to October 15, 2020. While payments are now due on or before July 15, a traditional extension still buys you more time to file your tax return.

Watch for state announcements. States are rolling out their own guidelines for extensions. Since most states require copies of federal tax return information, be prepared to still file by April 15. Remember, even if you wait until later to file your federal return and pay your tax, you may have to file your state and/or local return sooner.

What if I get a penalty anyway? Affected taxpayers subject to penalties and additional tax despite this relief provision may seek a waiver.

Rest assured, as the rules and deadlines change, updates will be provided. In the meantime, please stay safe during this challenging time.

Note: This is a fast changing topic. These rules are as of March 24, 2020.