Due to the coronavirus pandemic, the Department of Treasury and the IRS announced on April 9, 2020 that key deadlines for individuals and businesses have been extended (Notice 2020-23).
As a result, the 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. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for extra time. This also includes Americans who live and work abroad. These Americans can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.
Taxpayers Affected by the Coronavirus Pandemic
Any person, as defined in IRC 7701(a)(1), with a Federal tax payment obligation specified below, which is due (originally or pursuant to a valid extension) on or after April 1, 2020, and before July 15, 2020 is automatically postponed (extended) to July 15, 2020.
- Individuals income tax payments submitted with Forms 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR and 1040-SS
- Quarterly estimated income tax payments calculated or submitted with Forms 990-W, 1040-ES, 1040-ES (NR), 1040-ES (PR), 1041-ES, and 1120-W
- Please note – for individuals this includes Q1 and Q2 2020 estimated tax payments normally due April 15 and June 15
- Calendar year or fiscal corporate income tax payments submitted with Forms 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, and 1120-SF
- Estate and trust income tax payments submitted with Forms 1041, 1041-N, and 1041-QFT
- Estate and generation-skipping transfer tax payments submitted with Forms 706, 706-NA, 706-A, 706-QDT, 709GS(T), 706-GS(D), and 706-GS(D-1)
- Gift and generation-skipping transfer tax payments submitted with Form 709
- Estate tax payments of principal or interest due as a result of an election made under sections 6166, 6161 or 6163 and annual recertification requirements under section 6166
- Exempt organization business income tax and other payments submitted with Form 990-T
- Excise tax payments on investment income submitted with Forms 990-PF and 4720
Relief in Regards to Time-Sensitive Actions
- Filing a petition with the Tax Court
- Reviewing a decision rendered by the Tax Court
- Filing a claim for credit
- Filing a refund of any tax
You have until July 15, 2020 to perform these Specified Time-Sensitive Actions. These actions are due to be performed on or after April 1, 2020, and before July 15, 2020.
Due Dates Postponed for Certain Government Acts
This notice also provides the IRS with additional time to perform the time-sensitive actions. A 30-day postponement is granted for Time-Sensitive IRS Actions if the last date for performance of the action is on or after April 6, 2020, and before July 15, 2020.
As a result of the postponement of the time to perform Time-Sensitive IRS Actions, the 30-day period following the last date for the performance of Time-Sensitive IRS Actions will be disregarded in determining whether the performance of those actions is timely.
As defined in section 7701(a)(1), “affected taxpayers” include:
- Persons who are currently under examination;
- Persons whose cases are with the Independent Office of Appeals; and
- Persons who, during the period beginning on or after April 6, 2020, and ending before July 15, 2020, file written documents described in section 6501(c)(7) of the Code (amended returns) or submit payments with respect to a tax for which the time for assessment would otherwise expire during this period.
Do You Need More Time?
Individual taxpayers who need more time to file beyond the July 15 deadline can request an October 15, 2020 extension by using Form 4868; however your extension needs to be filed by July 15, 2020.
Filing an extension for additional time to file past July 15, 2020 will NOT extend the time to pay federal income tax beyond July 15, 2020. Interest, penalties and additions on taxes due, but not paid by July 15, 2020, will begin to accrue on July 16, 2020.
Estimated Tax Payments
Notice 2020-23 also extends tax payments. Besides the April 15 tax payments, this notice also extends relief to estimated tax payments due June 15, 2020. This means any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.
Unclaimed Funds from 2016
The law provides a three-year window to claim a refund. For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020.