The Latest on Tax Filing and Payment Dates
March 30, 2020
Over the last week, the IRS and U.S. Treasury Department have made a series of announcements to provide tax relief in the wake of the coronavirus pandemic. As of March 30th, here is the latest:
2019 federal tax filing and payment dates:
According to IRS Notices 2020-18 and 2020-20, any person with a federal income tax return or payment due on April 15, 2020, has until July 15, 2020, to file a return or make a payment. Specifically, a “person” includes an individual taxpayer, trust, partnership, association, company or corporation. Gift tax filings were added to this list by IRS Notice 2020-20. Taxpayers can defer payment of federal income tax (including any self-employment tax) owed for the 2019 tax year from the normal April 15 deadline until July 15. They can also defer their initial quarterly estimated federal income tax payments for the 2020 tax year (including any self-employment tax) from the normal April 15 deadline until July 15. Note that the payment date of second quarter estimated tax payments are still June 15.
Previously, the IRS had issued guidance (in Notice 2020-17) stating that corporations could postpone tax payments up to $10 million and all other taxpayers could postpone payments up to $1 million without penalties or interest. In Notice 2020-18, the IRS now states: “There is no limitation on the amount of the payment that may be postponed.”
Taxpayers don’t need to file any additional forms to qualify for this automatic federal tax filing and payment relief. But, if you’re due a refund, you probably still want to file your income tax return as soon as possible so you can receive your money. The IRS stated that “most tax refunds are still being issued within 21 days.”
Transition Tax Bills
According to the IRS, businesses subject to the transition tax on deferred-foreign earnings on their 2017 or 2018 tax returns can defer their installment payment due on April 15 to July 15.
State and local tax implications
Many states have also announced filing extensions and payment deferments for 90 days, to July 15, 2020. An updated list of state actions is available from the AICPA here.
We also encourage you to read Aprio’s blog, COVID-19: State and Local Tax Implications, on additional state and local tax matters and considerations that may impact taxpayers due to COVID-19.
We’re here to help
Aprio will provide additional updates and details as they are made available. If you have any immediate questions, please reach out to your Aprio Relationship Partner, or contact us here. We also encourage you to check out and subscribe to Aprio’s content hub, COVID-19 Advisor, for the latest news from Aprio.
About the Author
Mitchell is the partner-in-charge of Aprio’s Tax practice as well as the Technology & Biosciences group. He has been a partner since 1990 with Aprio, which is the largest Georgia-based tax, accounting and consulting firm. Mitchell works with companies in the software, gaming, clean tech, financial technology (FinTech), health care IT, processing, biosciences (biotech and medical device) and manufacturing industries. Whether a company is pre-revenue, starting up, growing or preparing for a liquidity event, Mitchell works with them to maximize their potential at each stage. He is known for promoting research, innovation and entrepreneurship by enabling companies to be successful, regardless of where they are in their business lifecycle.