The Treasury Department and the IRS have officially extended the federal income tax filing due date from April 15, 2020, to July 15, 2020. Read the complete announcement on the IRS website here.
The US government has a history of providing relief to taxpayers in times of natural disaster or other crisis, such as the present national emergency as a result of COVID-19. We anticipate that various strategies to stabilize the markets and provide further relief to businesses and individuals will be proposed over the short-term and that some of this relief may be effected through Internal Revenue Service (the IRS) guidance and through tax legislation. This page discusses the initial actions taken by the IRS and some responses from New York and New Jersey state taxing authorities.
The IRS has its own COVID-19 response webpage and has taken initial steps to provide relief to taxpayers, starting with delaying “tax day” from April 15, 2020, to July 15, 2020, as discussed in pertinent part below. More IRS guidance is likely.
On March 18, 2020, the IRS released Notice 2020-17, which delayed the payment of certain US federal income tax and estimated taxes due on April 15, 2020 (subject to somewhat restrictive thresholds). The relief provided in Notice 2020-17 did not extend to tax return filing obligations and therefore was viewed as somewhat limited. In response, the IRS issued Notice 2020-18 on March 20, 2020, which superseded Notice 2020-17. Notice 2020-18 postpones, without limitation, the due date for filing US federal income tax returns and making US federal income tax payments (including payments of tax on self-employment income) for the 2019 tax year due April 15, 2020, to July 15, 2020. These postponements are automatic so taxpayers do not need to file extensions. Taxpayers will now have additional time to file such returns and make such payments without accruing interest, penalties or additional tax for the failure to file or pay such taxes by April 15, 2020. (Interest, penalties and additions to tax with respect to such postponed federal income tax filings and payments will begin to accrue on July 16, 2020.) This relief is also available for federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an impacted taxpayer’s 2020 taxable year.
The extensions referenced above do not extend to any other types of US federal tax (e.g., US withholding tax) and do not apply to the filing of any federal information return. Further, this relief does not apply to any estimated tax payment, or any other federal tax return filing or payment, due on any date other than those due on April 15, 2020.
The IRS also issued Notice 2020-15, which provides that a high deductible health plan (“HDHP”) under Section 223(c)(2)(A) of the Internal Revenue Code of 1986, as amended, will not fail to be a HDHP by virtue of the plan providing health benefits associated with testing and treatment for COVID-19 without a deductible or with a deductible below the minimum.
Links to this information is provided at the bottom of the page.
Has the 2020 tax filing deadline been extended?
Yes, the IRS has extended the federal tax filing deadline for 2020. Individual federal income tax returns for tax year 2019 are due on or before July 15, 2020. Taxpayers and businesses also have an additional 90 days to pay their federal tax bill without interest or penalty.
This extension is automatic and applies to all taxpayers. You do not need to file any additional forms or request the extension from the IRS. Please feel free to contact us if you have further questions.
When are my taxes due?
Tax Day is now July 15, 2020. You will need to file your federal tax return and pay any taxes you owe before this date to avoid penalties.
Should I wait to file my taxes in 2020?
No, if you can file your return, there is no reason to wait for the deadline. In fact, if you are expecting a refund, you should file as early as possible. The sooner your return is accepted, the sooner you will receive your money.
Are tax refunds delayed because of coronavirus?
Refunds are still being processed normally. If you are expecting a refund, you should file your 2019 return as soon as possible. There is no reason to wait for the tax deadline. Filing now will help ensure that you see your funds without any kind of delay.
You can use Where is My Refund? after filing your taxes with us.
Can I get extra time to pay my taxes in 2020?
The IRS has extended the payment deadline by 90 days for all taxpayers. This means you have until July 15, 2020, to pay your federal tax bill for the 2019 tax year. But if you are still unable to pay your tax bill in full by the time it is due, the IRS can assist you with a payment plan. Learn more about IRS payment plans here.
Did New York and New Jersey state extend their filing deadline?
New York State Budget Director Robert Mujica along with Governor Cuomo have extended the tax filing and payment deadlines for income taxes to July 15, 2020 to match the federal extension. The New York City Department of Finance has announced that it will grant automatic penalty waivers to taxpayers that request a waiver on a late-filed extension or return, or in a separate request, for business and excise taxes due between March 16, 2020, and April 25, 2020. Any interest must be paid on all tax payments received after the original due date.
New Jersey passed AB 3841/SB 2300, a law providing that it will grant the same tax extension as the federal government but no later than June 30th. New Jersey’s June 30th extension applies to returns due on or before April 15th and for returns filed under the New Jersey Gross Income Tax Act and the Corporation Business Tax Act. The law does not explicitly grant an extension of time to pay but it may give the Director of the Division of Taxation the ability to grant such an extension.
We will keep you updated on this issue as information becomes available.
What is the quickest way to get my refund?
The quickest way to get your refund is still by filing electronically and choosing direct deposit according to the IRS. We always suggest our clients to file taxes electronically unless otherwise they might prefer to mail. IRS Commissioner Chuck Rettig said, “… we urge taxpayers who are owed refunds to file as soon as possible and file electronically.” He also stated that “the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds.”
When are quarterly estimated taxes for self-employed due in 2020?
The first quarterly estimated tax payment for tax year 2020 is due July 15. The second quarterly payment is still due as originally scheduled on June 15 (this has not been moved due to the COVID-19 outbreak).
Please be assured that we are here to assist you in every way possible with your taxes and accounting needs. Please do not hesitate to contact us so we can better guide you through this pandemic.
Announcement by the IRS Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount owed
Check for your Refund at https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Payment Plans Installment Agreements
The IRS coronavirus tax relief webpage is available at https://www.irs.gov/coronavirus.
Notice 2020-18 is available at https://www.irs.gov/pub/irs-drop/n-20-18.pdf.
Notice 2020-15 is available at https://www.irs.gov/pub/irs-drop/n-20-15.pdf.
***This page is current through March 27, 2020.