Congress passed the Families First Coronavirus Response Act and the CARES Act as tools to assist individuals and businesses. Further, the IRS extended tax deadlines by giving filers an automatic tax extension to July 15, 2020. This extended deadline pertains to most types of tax returns for the 2019 tax year.
IRS Issued a Series of Expanding Notices
In a series of notices, the IRS provides deadline relief related to most return and payment obligations. Each notice expands the deadline deferral to larger groups of taxpayers. For affected tax returns and payments please see the Tax Return Due Date Chart in the next section. Some items to note:
- The due date of the affected return or payment (or response to an IRS inquiry) must normally fall on or after April 1, 2020, and before July 15, 2020. This normal tax deadline may relate to an original return or to a valid tax return filing extension
- Example A – An S-Corporation with a fiscal year ending July 31, 2019, filed an extension for its tax return. Thus, the normal deadline was extended from October 15, 2019, to April 15, 2020. Because this due date falls between April 1 and July 15, 2020, the new tax deadline for this return is July 15, 2020.
- Example B – A married couple normally files Form 1040 for income earned in 2019 by the April 15 deadline. The tax deadline for this Form 1040 is July 15, 2020. This is because the due date falls between April 1 and July 15, 2020.
- Estimated tax payments originally due between April 1 and July 15, 2020 are now due July 15, 2020.
- Both penalties and interest for returns affected by the new deadline are suspended through July 15, 2020.
- The IRS tax deadline deferral does not apply to state returns. Please check your state’s tax department website for information on any state-specific deadline deferrals.
- One of the IRS notices also postpones all schedules, returns, and other forms that are either filed as attachments to those returns or are required to be filed by the due date of those returns, including, for example, Schedule H and Schedule SE, as well as Forms 3520, 5471, 5472, 8621, 8858, 8865, and 8938.
- Taxpayers may still request a filing extension for an affected return. For any filing extension to be valid, the extension must be requested by the due date of the related return. Please see “Overview of Tax Return Extensions” discussed later in this blog.
The IRS provided the following “Overview of Postponed Deadlines Granted in Notice 2020-23″.
Tax Return Due Date Chart For 2019 Tax Returns Due in 2020
Note that this chart was constructed for calendar year taxpayers. Some fiscal year returns and payments have the new deadline if their original or previously extended deadline falls after April 1, 2020 and before July 15, 2020, as per example A above.
Do not expect a further deferral by the IRS
On June 29, 2020, the IRS announced that it will not extend the deadlines again beyond July 15, 2020.
Not all returns have the deferral until July 15
Returns for 2019 income for S Corporation are not deferred to July 15, 2020. This is because the initial due date of those returns was March 16, 2020.
You can extend filing deadlines beyond July 15
Based on IRS deadline changes specific to this year, Tax Day this year is July 15, 2020. You may wish to request an extension of time in which to file your return beyond July 15, 2020. To do this, you need to file a form with the IRS. To file an extension, an individual taxpayer would complete Form 4868. A corporation or partnership would complete Form 7004, for example.
Note that a filed extension only extends the time for filing a return. An extension does not extend the time for payment of taxes computed on the return. The IRS deadline deferral comes with a waiver of interest and penalties through July 15, 2020. However, returns extended beyond July 15, 2020, will be subject to penalties and interest if you do not pay any owed tax by July 15, 2020.
The following chart lists some due dates related to various calendar-year tax returns that a taxpayer may extend. This chart also lists the IRS form number of the required tax return extension form.
The IRS deferred the due dates of tax filings and payments that were initially due between April 1, 2020, and July 15, 2020. The new July 15, 2020 due date is the same for all affected returns and payments. If you cannot file by July 15, 2020, you may extend that filing deadline but not any tax payment. Returns due either before April 1, 2020 or after July 15, 2020 are not eligible for the deferral.
Please contact us if you need help determining the deadline for any of your tax filings or tax payments, or if we can help you extend your current tax deadline.
Meet the Author
Michael specializes in meeting the tax compliance, projection, and planning needs of businesses, entrepreneurs, and business owners. He is Tax Partner in PW Associates, a firm that provides CFO and outsourced tax and accounting services. Michael has regional and small CPA firm experience and ran a sole practitioner tax practice for over 25 years.
This communication is provided by PW Associates, PLLC for educational and informational purposes only and is not intended, nor should it be construed as tax or legal advice. The comments in this communication are based on our understanding of applicable rules and regulations as of July 7, 2020.
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