IRS Expands Coronavirus-Related Tax Deadline Relief
July 15 is New Deadline for Wide Variety of Filers
The tax return filing and payment deadline extensions announced by the IRS in March have been broadened and extended to taxpayers with a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Affected taxpayers include individuals, trusts, estates, corporations, and other noncorporate tax filers.
The tax return filing and payment relief announced earlier by the IRS applied only 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 new action significantly broadens the filing and payment deadline relief and grants it automatically, so taxpayers do not have to file extensions or send documents to the IRS to obtain the deadline extensions. The period between April 1 and July 15 will be disregarded by the IRS in calculating any interest, penalty, or addition to tax for failure to file the forms specified in the notice.
Taxpayers do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief.
It is important to note that the deadline relief does not apply to Form 941 payroll tax filings that employers must make on or before April 30, 2020.
Following are Details of the Deadline Extensions:
Postponement of Government Actions
In addition to the deadline extensions listed above, the IRS also has given itself additional time to perform certain time-sensitive acts.
Like private businesses, government agencies have faced unprecedented challenges in getting their work done over the past two months. The COVID-19 pandemic has made it difficult for IRS employees, taxpayers, and others to access documents, systems, or other resources due to office closures or state and local government executive orders restricting activities. Hence, the IRS is giving itself an extra 30 days to perform time-sensitive acts if the last date for performance is on or after April 6, 2020, and before July 15, 2020.
Taxpayers affected by the IRS’s internal 30-day extension include those under examination, those with cases with the Independent Office of Appeals, and those who submit amended returns or submit payments with respect to a tax for which the assessment period would expire on or after April 6, 2020, and before July 15, 2020.
Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to Oct. 15, 2020, by filing Form 4868.
The IRS will continue to monitor issues related to the COVID-19 virus and provide additional guidance. We will share this information as we receive it.
If you have questions about how these deadline extensions may impact you, please contact our advisors.