IRS Pushes Tax Filing and Payment Deadline to July 15!
Once in a while, even in these dark days, we get some good news, and this item is especially good news for the procrastinators among us. With spring skiing, mircro-breweries, restaurants, music venues, and even the local library and beaches shut down, I really don’t have a reason not to do my taxes…but our friends at the IRS have now come to my rescue! In response to the coronavirus pandemic the IRS has delayed this year’s tax-filing and payment deadlines to July 15 from April 15 for many taxpayers. Now I can binge watch some lousy Netflix series instead of doing my taxes this weekend, what a deal. For those of you that have already filed, and paid your taxes, thank you – Uncle Sam needs the cash to stimulate the economy.
Laura Saunders, the resident tax expert at the Wall Street Journal wrote a very informative article on the topic on March 25, you can find the article at https://tinyurl.com/vdmfump.1
We have summarized some of the highlights below, please read Ms. Saunders’s article for a more detailed explanation.
- First as stated above the IRS has delayed this year’s tax-filing and payment deadlines to July 15 from the usual April 15.
- The deadline for making traditional IRA, Roth IRA, HSA or Archer MSA contributions is now July 15.
- The IRS also said it won’t start new audits, and it will suspend in-person meetings with taxpayers under exam through July 15.
- One does not have to be sick from the coronavirus or quarantined to use the new deadlines.
- You do not have to file a special form to use the July 15 deadline. 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.
- Your tax refund will not be delayed till July 15 as the IRS is processing refunds now.
- If you have already filed your 2019 return and scheduled an automatic withdrawal of your tax payment for April 15 the IRS will not automatically delay this payment until July 15. This is important, you must take action to change the payment date. If you are one of these taxpayers you can cancel the payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. But payment cancellation requests must be made no later than 11:59 p.m. ET two business days before the scheduled payment date. Then reschedule the automatic payment or mail a check to the IRS. Hopefully you won’t be waiting on hold for an extended period of time.
- If you need an extension you must file Form 4868 by July 15, but NOTE – the deadline to file returns with an extension remains Oct. 15, 2020.
- Some more good news, if you owe a 10% penalty on an early withdrawal you took from an IRS retirement account last year the deadline to pay it now July 15.
- One complicating factor impacts those of us that make quarterly tax payments – the first-quarter estimated tax payment due on April 15 is now due on July 15. BUT the second-quarter payment is due June 15, so you are paying the 2nd quarter payment before you pay the 1st quarter payment and they are both due within a few weeks. Got that? The thinking is this could change, so watch for further announcements.
- A few items don’t qualify for the three-month delay, such as: estate and gift taxes, excise taxes, information returns such as 1099 forms, and payroll taxes. Congress is considering a payroll-tax deferral so that could change.
- For more information on this or other questions, check the IRS’s FAQs and its page devoted to coronavirus issues: https://tinyurl.com/yx4atq6z.
- Concerning state taxes – some have extended individual income tax deadlines, others haven’t, in her article Ms. Saunders provides a nice link to a chart from the American Institute of CPAs reporting which state have announced changed deadlines, check it out here: https://tinyurl.com/yx36pa89 . It seems to be changing daily, as of March 25 it didn’t appear MA, ME, nor NH had changed their respective deadlines.
- Sounders, Laura. “New Details From the IRS on July 15 Tax Deadline, Audit Relief.” Wall Street Journal, March 25, 2020. https://www.wsj.com/articles/new-details-from-the-irs-on-july-15-tax-deadline-11585087948?mod=searchresults&page=1&pos=2.