The IRS has postponed the due date for filing Federal income tax returns and tax payments due on April 15, 2020 are granted an automatic extension to July 15, 2020. Below are the specifics of those postponements.
Filing Due Date Postponement:
- The due date for filing 2019 federal income tax returns due April 15, 2020 is postponed to July 15, 2020.
- This applies to any 2019 federal income tax returns due April 15, 2020. Thus, it applies to:
o 2019 individual 1040 and 1040-SR tax returns
o 2019 trust and estate 1041 returns
o 2019 calendar year corporation returns
o 2019 association returns (Forms 1120-C and 1120-H)
CAUTION: This postponement does not include the 1120-S returns which were due on March 16. Nor does it include Foreign Bank Account (FBAR) filings. However, FBARs have an automatic extension to October 15 which effectively makes October 15, 2020 the FBAR due date, so there is no need to worry about those at this time.
Payment Due Date Postponement:
- Any payments that would have been due on April 15, 2020 for the returns listed above are also postponed to July 15, 2020. This includes self-employment tax.
- Also postponed is the payment of the first 2020 estimated tax installment (Forms 1040-ES, 1041-ES, 1120-W). However, at this time the June 15 estimated tax payment has not been delayed, so for now the June 15th estimated installment needs to be paid on time.
- There is no limit on the amount of the payment that can be postponed. Previous guidance from the IRS included deferral limits. However, current IRS guidance supersedes that and now there are no limits.
Extensions – There is no need to file Forms 4868 or 7004 to request an extension since the postponement is automatic. It is presumed, unless further guidance is provided, that if an additional extension to October 15 is desired, it would require filing an extension before July 15.
Late Filing and Late Payment Penalties – No late filing or late payment penalties will apply during the 3-month filing and payment postponement period. Unless further relief is provided, these penalties will resume after July 15, 2020.
Other Filings – Without further relief, the IRS has made it clear that no extension is provided for the payment or deposit of any other type of Federal tax, or for the filing of any Federal information return.
2019 IRA Contributions – IRA contributions for 2019, have been extended according to the IRS website as of the date of this article thus the last day to make a contribution for 2019 is July 15, 2020. This also applies to HSA and Archer MSA contributions.
Cancelling Direct Withdrawals – If you have already filed a return that included a direct debit for a tax due, and you want to postpone the withdrawal date, that withdrawal can be cancelled by calling the IRS e-file Payment Services 24/7 at 1-888-353-4537. Generally, you will have to wait 7-10 days after the return was e-filed to call. Cancellation requests must be made no later than 11:59 p.m. ET two business days prior to the scheduled payment date. Once the payment has been cancelled it will have to be rescheduled (or the tax paid by other means) to no later than July 15, 2020.
To reschedule a direct payment, visit the IRS direct pay web page.
The IRS has provided a series of Q&As related to this issue.
If you have questions or want information on state filing postponements or need other tax assistance, please call or email us. We continue to provide assistance for our clients during this troubling time. If your return can still be filed now, you are encouraged to provide your tax information as soon as soon possible.Tags: July 15 filing extension, July 15 payment extension