Many of you have heard about the IRS pushing out the tax payment date from April 15 to July 15. Here are a few key things to know:
1. The PAYMENT and FILING deadline for filing federal taxes has been extended to July 15th for up to $1 million of tax due.
2. This IRS announcement does not impact state filings. Virginia has not announced any change to the filing and payment deadline of May 1st.
A few other details
This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. For C Corporations, the 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.
Business owners should discuss with their tax advisor about how this impacts them and look at options based on their situation. Learn more here.
Do I have to file a special form to use the July 15 deadline?
No. If you file a return or an automatic extension request and pay your tax due by July 15, no interest or penalties will be due.
I already filed my 2019 return and scheduled an automatic withdrawal of my tax payment for April 15. Will the IRS automatically delay this payment until July 15? No, but taxpayers can take action to change the payment date. The IRS says these taxpayers can cancel their payment by contacting the U.S. Treasury Financial Agent at 888-353-4537.
Is my deadline to contribute to an Individual Retirement Account, Roth IRA, Health Savings Account or Archer MSA also extended?
Yes, these deadlines are delayed to July 15 from April 15.
I owe a 10% penalty on a withdrawal I took from a retirement account last year. Is the deadline to pay it now July 15 instead of April 15?
Yes, this deadline is postponed as well.
I see that my first-quarter estimated tax payment due on April 15 is now due on July 15. What about the second-quarter payment, due June 15?
As of now, the second-quarter payment is still due on June 15. This could change, so watch for further announcements.
I haven’t yet claimed my 2016 refund, and the deadline to file for it is April 15, 2020. Will that now be delayed to July 15?
No. The extension is only for 2019 taxes, according to the IRS.
What doesn’t qualify for the IRS’s three-month delay?
Among other things: estate and gift taxes, excise taxes, information returns such as 1099 forms, and payroll taxes—although Congress is considering a payroll-tax deferral. In addition, tax items that don’t have April 15 deadlines, such as the March 16 due date for partnership returns, don’t qualify for the extension.
Are the IRS offices closed?
The agency released information about some IRS office closures, taxpayer appointments and correspondence, and the Taxpayer Advocate Service.
Paula, Molly,and I are here to answer your questions. Please continue to follow EDGe on social media and on our EDGe blog for updates on other small business assistance measures.