IRS Expands Coronavirus-Related Tax Deadline Relief

Form W-2 Wage and Tax Statement

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:

  • The notice postpones the June 15 deadline for estimated tax payments to July 15.

  • The deadline for filing a 2016 tax return to claim a refund, normally April 15, is extended to July 15. The return must be postmarked by July 15.

  • Installment payments of the Sec. 965 transition tax due on or after April 1, 2020, and before July 15, 2020, are postponed to July 15, 2020.

  • Americans who live and work abroad can now wait until July 15, 2020, to file their 2019 federal income tax return and pay any tax due.

  • Federal Tax Forms and Payments Covered by the Relief Include:

    • Individual income tax payments and return filings on Form 1040, U.S. Individual Income Tax Return, and other forms in the 1040 series.
    • Calendar year or fiscal year corporate income tax payments and return filings on Form 1120, U.S. Corporation Income Tax Return, and other forms in the 1120 series.
    • Calendar year or fiscal year partnership return filings on Form 1065, U.S. Return of Partnership Income, and Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.
    • Estate and trust income tax payments and return filings on Form 1041, U.S. Income Tax Return for Estates and Trusts, and other forms in the 1041 series.
    • Estate and generation-skipping transfer tax payments and return filings on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and other forms in the 706 series.
    • Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, and any supplemental Form 8971.
    • Gift and generation-skipping transfer tax payments and return filings on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, that are due on the date an estate is required to file Form 706 or Form 706-NA.
    • Estate tax payments of principal or interest due as a result of an election made under Secs. 6166, 6161, or 6163 and annual recertification requirements under Sec. 6166.
    • Exempt organization business income tax and other payments and return filings on Form 990-T, Exempt Organization Business Income Tax Return (and Proxy Tax Under Section 6033(e)).
    • Excise tax payments on investment income and return filings on Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, and excise tax payments and return filings on Form 4720, Return of Certain Excise Taxes under Chapters 41 and 42 of the Internal Revenue Code.

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.