Updated with new information released by the IRS the afternoon of March 20, 2020.
The IRS issued Notice 2020-18 that clarifies US Treasury Secretary Steve Mnuchin’s earlier announcement on March 20, 2020.
The notice stated that the due date for filing federal income tax returns and making federal income tax payments is automatically postponed to July 15, 2020, from April 15, 2020, because of the coronavirus (COVID-19) pandemic.
Taxpayers don’t need to file an extension request for the deferral to July 15, 2020.
The relief is available solely for federal income tax payments, including payments of tax on self-employment income, related to the taxpayer’s 2019 tax year and 2020 estimated tax payments due on April 15, 2020. There’s no limitation on the amount of payment that may be postponed.
There’s no extension of payment or deposit for any other type of federal tax.
The period from April 15, 2020, to July 15, 2020, will be disregarded for purposes of calculating interest, penalties, or addition to tax for failure to pay federal income taxes postponed by the notice. Interest, penalties, and additions to tax with respect to payments deferred will begin to accrue on July 16, 2020.
Secretary Mnuchin had announced via Twitter, “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.”
Previously, the US Treasury Department and the IRS had announced that taxpayers could defer making income tax payments for 2019 and estimated income tax payments for 2020 due April 15 (up to certain amounts) until July 15, 2020. Now, the federal government is stating that you don’t have to file a return by April 15 and removes the cap on the payment amount that can be deferred.
Of course, if you’re due a tax refund, you probably want to file as soon as possible so you can receive the refund money.
We’re Here to Help
Even with a deferred filing date, it’s still a good time to move forward with filing your 2019 returns. Contact your Moss Adams professional with any questions you might have about these updates and your timeline.
For regulatory updates, strategies to help cope with subsequent risk, and possible steps to bolster your workforce and organization, please see the following resources: