When US Treasury Secretary Steven Mnuchin first announced on March 17, 2020 that the US Government would postpone the April 15 tax-payment deadline 90 days, most people assumed that would extend the filing deadline also. But that wasn’t the case. It wasn’t until March 21 that Treasury did indeed delay the Federal tax filing deadline, presumably after realizing that the IRS and CPAs also would be impacted by the possible impacts of illnesses and a country in emergency mode with many financial emergencies. Last Friday, the IRS temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice.
Key Points of Federal Tax Extension under IRS Notice 2020-18
- The notice applies to 2019 returns due on April 15 for all taxpayers, including individuals (employees and self-employed), trusts, estates, corporations, and other non-corporate taxpayers.
- The tax filing deadline is automatically extended from April 15, 2020, to July 15, 2020, without filing any extension request.
- Individuals who need additional time to file beyond the July 15 deadline still can file an extension by July 15.
- While the original tax payment deferral was a limited amount, the most recent extension applies to all federal tax payments, regardless of amount.
- There are no penalties or interest accrued during the extension period, regardless of the amount owed.
- Taxpayers who are due a refund can still file as soon as possible. The IRS has said that most tax refunds are being issued within 21 days.
- Individuals may make 2019 IRA contributions until July 15.
Estimated Income Tax Payments
The IRS also extended to July 15, 2020 the payment of 2020’s first estimated tax payment that would have been due on April 15, 2020. However, the second estimated tax payment due June 15 has not yet been extended.
State Tax Extensions
Many states have also provided filing and payment extensions, some of which are different than the Federal changes.
For AMG’s tax preparation clients, AMG will keep you informed on the deadlines for your returns and payments.
Additional details can be found here: