IRS Extends Tax Filing Deadline to July 15
Update: The IRS has provided additional information on filing and payment here.
On March 20, the IRS extended the federal income tax filing deadline to July 15, in order 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, including those who pay self-employment tax, 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 payments due but also to 2020 federal estimated tax payments originally due on April 15.
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 for the filing of any federal information return. This relief is available solely with respect to federal income tax filings and payments, including payments of tax on self-employment income.
What This Means for You
We understand that each taxpayer’s situation is unique, and in order 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 in order 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, you can proactively determine the amount and then plan to delay the payment until closer to the deadline.
Undoubtedly, 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 KSM advisor.
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