Tax Day Extended

By: Franco DiLiberto

Tax Day has been extended! On March 21, 2020, the IRS announced that the federal income tax filing due date for 2019 returns is automatically extended from April 15, 2020 to July 15, 2020.  This extension applies to all taxpayers, including individuals, trusts, estates, etc.  This new filing date also extends the deadline for paying any 2019 federal tax due, along with penalties and interest.  Further payments on 2019 taxes are not due until July 15, 2020 and interest and penalties will not begin to accrue until July 16, 2020.  Unlike an earlier iteration of the extension, there is no limit on the amount of the payment owed.  As this is an automatic extension, no form or action is needed by taxpayers to qualify for this extension.

What about 2020 estimated tax payments? The due date for 1st quarter 2020 estimated taxes has also been extended to July 15,2020.  However, 2nd Quarter 2020 estimated taxes have not been extended, and they remain due June 15, 2020.  The due dates for contributions to an IRA or HSA have been extended to July 15, 2020.  While there is some expectation that most states will follow suit and extend their filing deadlines to July 15 as well, most have not yet done so, including Ohio.  We should have more clarity soon in the coming days as additional guidance is released.

Even with the filing date extension, the IRS is encouraging taxpayers who are owed refunds to file as soon as possible with electronic filing being the quickest method to receive these refunds.  We recommend our clients who expect refunds to file as soon as possible.  For those clients with a balance due, we suggest continuing to move forward to get the return completed in the coming weeks and then just defer filing and payment of the taxes due until closer to the July 15 deadline.