You may have heard about the 90-day tax payment extension due to the coronavirus pandemic. As of March 20, 2020, the Treasury Department announced the extension of Tax Day to July 15, 2020, including the filing and payment deadline.
So what exactly does the extension mean for American taxpayers and businesses as they file and pay their 2019 tax liability? Read on to learn about important key dates, who it covers, and what the extension covers:
- July 15, 2020: Tax return deadline
Your tax filing is now due on this date. If you need more time, you can request an extension to October 15, 2020. Read the FAQs below for details.
- July 15, 2020: Tax payment deadline
If you owe income taxes for 2019, you can delay your IRS payment until this time. You will not owe interest or penalties if you pay before this deadline.
Coronavirus Tax Deadline FAQs
Who is eligible for the tax payment deferral?
The following taxpayers are eligible to file using the special coronavirus tax extension:
- Individual Form 1040 filers
What do I need to do if I need to delay my filing and tax payment?
You must file your tax return or extension by July 15 as you normally would.
The 90-day tax payment deferral is automatic when you file.
Interest and penalties will automatically be waived for 90 days and won’t accrue for qualifying taxpayers and businesses until after July 15.
What if I need more time to prepare my return?
If you need an extension, you must file Form 4868 to request an extension by July 15, 2020.
It is important to note that although the extension would give you until October 15 to file your return, your payment would still be due by July 15, 2020.
What if I’m getting a refund? Does this news affect me at all?
If you expect to receive a refund, the extension should not affect you.
The Treasury Department says you should still expect to receive your refund within the normal time period (within 21 days of electronic filing for correct returns).
What types of payments does this deferral cover?
It covers income tax payments, as well as any normally associated interest and penalties, such as the failure-to-pay penalty.
It also covers estimated tax payments (including payments of tax on self-employment income) that are due on April 15, 2020, for the 2020 tax year.
How much can I defer?
There is no limit on the amount of tax payment you can defer.
Does this deferral apply to 2020 estimated tax payments?
Yes. At this time, the tax payment deferral includes the first 2020 estimated tax payment (including estimated self-employment taxes) otherwise due on April 15, 2020.
Does this announcement mean I don’t owe taxes for 2019?
No, the deferral only extends the due date of when your tax liability is due. It does not exclude or exempt taxpayers from filing if they are already required to file. Interest and penalties will again accrue on outstanding tax liabilities starting July 16, 2020.
It is also important to note that the IRS is still currently accepting returns and processing refunds, and we are ready to help you get your important refunds now.
We are here to help during the coronavirus tax extension period and will be standing ready to help—no matter how you choose to file. Now, more than ever, we understand how important your refund is to your financial wellbeing and are ready to work with you and get you the most money back.
If you’d like to stay informed about the changing tax landscape and the impact of the coronavirus pandemic, please call our office at (732) 566-3660.