To further aid taxpayers affected by the COVID-19 outbreak, the U.S. Department of Treasury and the IRS have elected to extend further critical tax deadlines affecting individuals and businesses.
This notice expands the relief announced in March that allows most taxpayers until July 15, 2020, to file and pay federal income taxes that were originally due on April 15 with no late penalties or interest. The new extensions now apply to generally all taxpayers who have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020, including individuals, trusts, estates, corporations, and other non-corporate tax filers. Now anyone, including Americans who live and work abroad, have until July 15 to file and pay their 2019 federal income taxes.
Individual taxpayers requiring additional time to file beyond the July 15 deadline can request a filing extension to October 15, 2020, by filing Form 4868. Businesses who need more time to file must use Form 7004. An extension to file taxes is not an extension on payment of any taxes owed. Any taxpayer requesting further time to file should estimate their tax liability and pay their amounts owed by the July 15, 2020, deadline to avoid potential interest and penalties.
Estimated Tax Payments
Individuals and corporations who have a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can now wait until July 15 to make that payment without penalties.
Unclaimed 2016 Refunds—Deadline Extended to July 15, 2020
For taxpayers who may be owed a refund from their 2016 returns, the usual April 15 deadline to claim the refund is also extended to July 15, 2020 (taxpayers must properly address, mail, and ensure the tax return is postmarked by the July 15, 2020, date). Taxpayers legally have the right to claim a refund within a three-year window. If a return is not filed within three years, the money then becomes property of the U.S. Treasury.
Contact Your CRI Professional
Our CRI tax advisors are ready to help answer questions and guide you through the tax filing and payment process during this unprecedented time. Visit our COVID-19 Resources for more relief information related to the COVID-19 pandemic and be sure to check back frequently as we add more relevant articles, podcasts, resources, and webcasts.