The IRS issued Notice 2020-18 on Friday March 20, 2020 which provided guidance on the Tax Day delay.
The April 15, 2020 income tax deadline has been postponed to July 15, 2020. Associated interest and penalties for late filing or late payment has also been suspended until July 15, 2020.
Taxpayers do not need to file an extension or any other documentation to take advantage of the delay. This a change from prior guidance which extended the payment deadline but required a timely filed extension. The new administrative guidance is welcome relief for all.
Taxpayers who expect a refund with their 2019 tax return should move forward and file without delay. Consider submitting bank account information to receive a direct deposit refund rather than a paper check via US mail. Most refunds are received within 21 calendar days — often faster with efile and direct deposit.
State tax filing guidance
While the federal government has granted an automatic extension, taxpayers with requirements to file state returns or make state payments need to look for guidance issued by each state taxing authority. The AICPA has put together a summary of state relief actions which can be used as a guide — state by state guidance should be confirmed directly with each state taxing authority prior to taking action.
We expect states will issue additional relief guidance this week. Stay tuned.
Not all federal taxes are extended
Tax relief described in Notice 2020-18 is available only for Federal income tax payments and Federal income tax returns due on April 15, 2020 including the first estimated tax payment for 2020.
No extension is currently provided for taxes other than Income Tax. For example due dates for payroll taxes, excise taxes, and information returns remain in force.
At AccountFWD we guide entrepreneurs and high net worth families through the intricacies of taxes and accounting. If you have questions about how COVID-19 has impacted your tax position leave a comment, send a note, schedule a time to connect, or give us a call 954-686-8687.
