This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax returns and pay any taxes due.
To help taxpayers, on April 9, 2020, the Treasury Department and the Internal Revenue Service announced additional extensions of key tax deadlines for individuals and businesses.
Last month, the IRS announced that taxpayers generally have until July 15 to file and pay federal income taxes originally due on April 15. No late-filing penalty and no late-payment penalty or interest will accrue during this 90-day period.
Notice 2020-23 expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1 and before July 15. Individuals, trusts, estates, corporations and other noncorporate tax filers also qualify. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax returns and pay any taxes due.
Extension of Time to File Beyond July 15
Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to October 15 by filing Form 4868 by July 15. Businesses who need additional time must file Form 7004. Be careful to properly estimate your tax liability and pay any taxes owed by July 15 to avoid interest and penalties.
Estimated Tax Payments
In addition to deferring the April 15 estimated tax payment date to July 15, the notice also extends relief to estimated tax payments due June 15. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1 and before July 15 can wait until July 15 to make that payment, without interest or penalty.
TAG’s Perspective
As we had hoped, IRS provided additional and necessary payment relief. For those taxpayers who may have completed their returns, but not yet filed or paid, this is another opportunity to consider delaying payment and investing or conserving cash. We wish you continued health and safety.
For Further Information
If you would like more information about this topic or your own unique situation, please contact Michael A. Gillen, Steven M. Packer, any of the practitioners in the Tax Accounting Group or the practitioner with whom you are regularly in contact. For information about other pertinent tax topics, please visit our publications page.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.