What The IRS Tax Payment Extension Means For You
The Treasury Department and the IRS announced that they are extending the tax payment deadline by 90 days. However, the filing deadline still remains April 15th. This means that tax returns must be filed by April 15th, but the tax payment is not due until July 15th. No penalties or interest will accrue if tax payments are made by July 15th. The payment deadline extension also applies to first quarter estimated tax payments. First quarter estimated tax payments, which are typically due on April 15th, are now due on July 15th as well. Accordingly, we will not be sending out estimated tax payment reminders prior to the April 15th deadline. Per the American Institute of Certified Public Accountants (AICPA), the state of Ohio has already acknowledged that they will follow any federal level filing and payment extensions. NorthAvenue is continuing to track to the April 15th filing deadline. If a return cannot be filed by April 15th, we have the option of filing an extension which extends the filing deadline by 6 months. If you do not typically file an extension but anticipate needing an extension this year, please let us know. We have included the below announcement sent directly from the IRS to Tax Professionals for further details.
Payment Deadline Extended to July 15, 2020
The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return.
This payment relief includes:
Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.
This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.
The IRS reminds individual taxpayers the easiest and fastest way to request a filing extension is to electronically file Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses must file Form 7004.
This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details. More information is available at https://www.taxadmin.org/state-tax-agencies.
How to Send Us Your Hard-Copy Tax Documents
As we are working from home, we will not be at the office to receive your tax documents in person. Office mail is currently being forwarded to Kristen Moosmiller’s home address. However, the USPS has informed us that sending mail to our office address will increase delivery time to us by 2-3 business days. Additionally, we have no way of knowing whether postal mail service will continue, in the coming weeks.
If you are unable to send us documents electronically, we recommend that you mail any hard copy documents to Kristen’s home address so that we may receive them as expeditiously as possible.
If you plan to mail us documents, please contact one of our staff, and we will provide you with her mailing address.