The IRS recently announced that they extended the federal tax filing deadline to July 15, 2020, three months after the normal April 15, 2020 deadline, to give all individuals and businesses an extra 90-day extension to file their returns. The first quarter estimated tax which may be due in April 2020 also gets a free pass until July 15, if necessary.
As of this writing, state taxes are still due on April 15, as Massachusetts (and most surrounding states) have not made changes to their filing deadlines. We’ll let you know when (and if) they do.
Keep in mind that even though the federal tax filing deadline has been extended, many taxpayers receive refunds, which can be a huge help during challenging economic times. If you anticipate getting money back from the government this year, file your returns as soon as possible! This extra money could be a much-needed deposit into your account if business has slowed down.
To date, the IRS has not yet released formal guidance on the extension, but here’s what we know so far:
- The filing deadline for all income tax returns originally due April 15, 2020 are due on July 15, 2020. Taxpayers may still file for extensions on these returns, and these extension requests must be filed by July 15, 2020 to be considered timely.
- Taxpayers who have 2019 income tax payments due by April 15, 2020 have an automatic extension on payments until July 15, 2020.
- This penalty and interest relief is also applicable to first quarter 2020 income tax estimate payments, which are also traditionally due on April 15.
- Note that this relief is only applicable to federal income tax payments. Other types of taxes are not included in this notice.
- This extension is granted for all filing and payments of total tax due per taxpayer for individuals and entities, such as trust or estates, other than C Corporations. Taxpayers do not need to file any additional forms to qualify for this relief.
- C-Corporations will have a similar income tax payment deadline extension to July 15, 2020 for amounts up to $10 million of total tax due.
- Penalties and interest will begin accruing on unpaid amounts on July 15, 2020.
We’ll reach out to you to determine how these new relief provisions affect your situation. Even though we’re all in the midst of unprecedented uncertainty, we will get through this together. We’re working hard to meet compliance deadlines and help clients reach their goals.
Please reach out if you have questions or would like to discuss your financial plan. You can call our office at (781) 247-5569, text the office line at (781) 790-4504, or email me at stu@erocktax.com.
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About Stu: With more than 30 years of experience as a tax professional, Stu Steinberg brings a broad depth of knowledge to his work with his clients. Stu founded Erock Tax to help provide tax and financial planning strategies to individuals, families and small businesses and is passionate about empowering his clients through education about their money health. Stu is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.