As a business owner or financial expert, by now you should be aware of the importance of filing your taxes on-time. You may have also become familiar with tax season being between January 1 and April 15 of each year. This is traditionally the period where businesses and individuals prepare and report financial statements for the previous year in order to claim tax returns. Since the outbreak of the coronavirus (COVID-19), however, this has been adjusted. The IRS first announced a tax deadline extension in March.
The Treasury Department and the Internal Revenue Service officially announced that they are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020.
What Does The Covid-19 Tax Deadline Extension Cover?
This relief applies to all individual returns, trusts, and corporations. It is also automatic. This means taxpayers do not need to file any additional forms or call the IRS to qualify.
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 remaining unpaid balances as of July 16, 2020. You’ll automatically avoid interest and penalties if taxes are paid by July 15.
The IRS urged that taxpayers who are owed a refund should file as quickly as possible. For those who can’t file by the new deadline, the IRS reminds that everyone is eligible to request an extension.
Extension of time to file beyond July 15
Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to Oct. 15, 2020, by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004. An extension to file is not an extension to pay any taxes owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by the July 15, 2020, deadline to avoid additional interest and penalties.
Estimated Tax Payments
Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020. This means that 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.
2016 unclaimed refunds – tax deadline extended to July 15
For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15, 2020, date.
IRS.gov assistance 24/7
According to the IRS, live telephone assistance is currently unavailable due to COVID-19. Assistance Tax help is available 24 hours a day on IRS.gov. The IRS website offers a variety of online tools to help taxpayers answer common tax questions.
Need more time to prepare your federal tax return? This page provides information on how to apply for an extension of time to file.
Need help preparing your books for tax season? Bookkeeping Confidential is here to help. Hire a certified full-service bookkeeper for your business, today!
This article is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bookkeeping Confidential assumes no liability for actions taken in reliance upon the information contained herein.