The Treasury Department and the Internal Revenue Service announced special payment relief to individuals and businesses in response to the COVID-19 Outbreak.
The filing deadline for tax returns remains April 15, 2020, however, income tax payment deadlines have been extended to July 15, 2020 for many taxpayers.
Taxpayers who are owed a refund should file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, individual taxpayers are eligible to request a six-month extension to file their return.
This new payment relief includes:
Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Corporations: For C Corporations, 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. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.
The IRS reminds individual taxpayers the easiest and fastest way to request a filing extension is to electronically file Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses must file Form 7004.
This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax.
For more info or help with preparing your 2019 tax documents, contact Jay Shaprio at 951-385-6616 or [email protected]. Jay has more than 30 years of accounting experience. His practice is located in Weston, on North Commerce Parkway.