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16639: COVID-19 Impact on Tax Deadlines


IRS Info/Alerts

Where can I find out more information about the novel coronavirus 2019 with regard to tax filing and payment deadlines?

 

On March 20, 2020, Treasury Secretary Steven Mnuchin announced that the tax filing deadline will now also be moved from April 15 to July 15. All taxpayers and businesses will have additional time to file and make payments without interest and penalties. More details will be added as received. At this time, we do not know if all states will conform to the July 15th extended deadline, but we are attempting to gather more information. 

IRS Notice 2020-18, released on March 20, 2020 states:

"Federal income tax filing and payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. The Treasury Department and IRS are providing relief to all taxpayers who have Federal income tax returns and Federal income tax payments due on April 15, 2020. The April 15, 2020 deadline is postponed to July 15, 2020. Associated interest, additions to tax, and penalties for late filing or late payment will be suspended until July 15, 2020."

The IRS has provided a new FAQ for some common questions about the filing and payment deadlines affected. 

 IRS Notice 2020-17, released on March 18, 2020, states the following:

"The Treasury Department and IRS are extending the due date for Federal income tax payments due April 15, 2020, to July 15, 2020, for payments due of up to $10 million for corporations and up to $1 million for individuals - regardless of filing status – and other unincorporated entities. Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020." 

Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. The relief applies to the following:

  • individual taxpayers with a payment due (up to $1 million),
  • self-employed taxpayers with a payment due (up to $1 million)
  • first quarter estimated tax payments for the 2020 tax year (those that were originally due April 15, 2020),
  • trusts and estate returns with a payment due (up to $1 million), 
  • corporations with a payment due (up to $10 million).

IRS Notice IR-2020-66 extends deadlines for the following additional taxpayers. "... extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020." This will also include the second quarter estimated tax payment originally due June 15, 2020 now have until July 15, 2020 to pay without incurring a late payment penalty. Taxpayers who need to file their 2016 return to claim a refund will also have until July 15th to do so.

The IRS has provided the following website for updates related to the coronavirus: Coronavirus Tax Relief

Payments 

Payments can now be scheduled up until July 15, 2020. To avoid EF message 2517, and allow the payment to be processed, enter the requested payment date on the PMT screen and verify the information on the Transaction Summary page in view mode. 

The first quarter voucher will still be printed with April 15, 2020 due date, but you can indicate whether the payment should be withdrawn on April 15 or July 15. See Related Links below for details. 

For information about payments that have already been scheduled, see the IRS Filing and Payment Deadlines FAQ 14

Stimulus

Most taxpayers will automatically receive their economic impact payment. See IRS News Release IR-2020-61, released on March 30, 2020, for detailed information and answers to some FAQs.

States 

The federal changes may or may not impact states. Review the state DOR websites and Related Links below for updated information about filing and payment deadlines.


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