Tax Day Now July 15

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Treasury and IRS Extend Filing Deadline and Federal Tax Payments to July 15 Regardless of Amount Owed – Individual and Business Extension Forms Not Necessary (3‐21‐2020)

On Friday March 20, 2020, the IRS issued a News Release (IR‐2020‐58) and Notice 2020‐18 clarifying, expanding on, and changing previous guidance regarding taxpayers filing and payment obligations for 2019 tax returns and tax payments due between April 15, 2020 and July 15, 2020. Notice 2020‐18 superseded Notice 2020‐17, issued just 2 days prior on March 18, 2020.

Here are some of the key elements of IR‐2020‐58 and Notice 2020‐18 you should be aware of:

  • The due date for filing Federal income tax returns and making Federal income tax payments due April 15, 2020, is automatically extended to July 15, 2020. Taxpayers do not have to file for extensions (Forms 4868 for individuals or 7004 for business and other entities).
  • There is no limitation on the amount of the payment that may be postponed. This is a significant change from the limitations stated in Notice 2020‐17 (1 million for individuals and 10 million for corporations).
  • The deferment appliesto all taxpayers, including individuals, partnerships, associations, trusts and estates filing fiduciary returns, and corporations.
  • The relief provisions are available solely with respect to Federal income tax payments(including payments of tax on self‐employment income) and Federal income tax returns due April 15,2020 in respect to a taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self‐employment income) due on April 15, 2020 for a taxpayer’s 2020 taxable year.
  • There is no discussion of 2020 second quarter tax estimates due June 15, 2020. Therefore, as of today and until further guidance is issued, these payments are still due June 15, 2020.
  • No extension is provided for payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.
  • The period from April 15, 2020 to July 15, 2020 will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the Federal income tax returns or to pay the Federal income tax postponed. However, interest, penalties, and addition to tax will begin to accrue July 16, 2020.
  • Individuals who need additional time beyond July 15, 2020 can request a filing extension by filing Form 4868. Business and other entities who need additional time beyond July 15, 2020 can request a filing extension by filing Form 7004.

State Filing and Reporting Guidance
Each state is expected to enact their own tax relief due to the COVID‐19 pandemic and may not conform to the relief provisions described in Federal IR‐2020‐58 and Notice 2020‐18. For rules and guidance for California taxpayers, see WNDE’s previous posting titled Tax Authorities Issue Guidance on Tax Relief Due to the Covid‐19 Pandemic dated March 20, 2020. Please consult your WNDE tax professional for information on tax relief for your State.

The information contained herein is as of March 21, 2020. We continue to receive information from the Federal and State governments daily and, as such, the rules and interpretations of those rules are subject to change.