US Tax Filing Deadline Extended to July 15

By March 20, 2020 March 23rd, 2020 COVID-19 Insights
Tax Day Moved to July 15 | US Treasury

Published: March 20th, 2020 at 10:32 AM PST | Updated: March 23rd, 2020 at 9:45 AM PST

On Friday, March 20, 2020 the Internal Revenue Service (IRS) officially announced that, due to the ongoing coronavirus pandemic, tax returns due April 15 will not have to be filed until July 15 this year. The IRS released Notice 2020-18 hours after Secretary Steven Mnuchin broke the news via Twitter that President Donald Trump had directed him to move Tax Day to July 15.

His tweet read: “At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”

The Treasury Secretary followed up his initial tweet with another, encouraging “all taxpayers who may have tax refunds to file now to get your money.”

According to the Notice, the postponement applies to “any individual, a trust, estate, partnership, association, company or corporation” with federal income tax return or income tax payment due on April 15. They do not have to file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, or Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.

Earlier in the week, the IRS and Treasury Department announced the federal income tax payment deadline had been extended 90-days (to July 15). Under the previous guidance, C corporations and consolidated groups could postpone up to $10 million in tax payments. All other taxpayers could postpone up to $1 million in tax payments. However, Notice 2020-18 removes this limitation on the amount of tax that can be postponed.

Furthermore, under Friday’s guidance, no interest, penalty, or addition to tax for failure to file a federal income tax return or to pay federal income taxes will accrue between April 15, 2020, and July 15, 2020, for any return or payment postponed by the Notice.

Friday’s announcement applies exclusively to federal income tax returns and payments (including self-employment tax payments) due April 15, 2020, for 2019 tax years, and to estimated income tax payments due April 15, 2020, for 2020 tax years. The notice explicitly does not apply to any other type of federal tax or to any federal information returns.

It is up to the states to set their own deadlines. Some states have already chosen to make changes due to the coronavirus. For example, in California, the Franchise Tax Board (FTB) announced that they postponed the filing and payment deadlines for all individuals and businesses until July 15. Additional state filing guidelines can be found here.

Disclaimer: This material has been prepared for informational purposes only, and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional tax planner or financial planner. All information is provided “as is,” with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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