With the impact of COVID-19 across the country, many legislators and taxpayers were calling upon the IRS and Department of the Treasury to extend the tax filing deadline for individuals. With this in mind, an extended tax filing deadline has just been announced.
The IRS released guidance earlier this week stating that taxpayers will receive a three-month extension for paying their 2019 taxes. The Department of the Treasury now also announced that this extension will also apply to filing your tax return as well.
What does a Tax Filing & Payment Extension do?
In short, the IRS has waived the filing requirement, as well as the payment requirement, until July 15, 2020. Individual returns that were due on April 15, 2020, are now automatically extended to July 15, 2020. There is no action necessary from the taxpayer; everyone automatically gets this extension.
What Tax Deadline is Moved/Extended?
Effective immediately, the following deadlines have been extended to July 15, 2020:
- Individual Federal 1040 filing and payment deadlines (previously 4/15/2020)
- First quarter 2020 estimated payment deadline (previously 4/15/2020)
- C-Corporation (Form 1120) filing and payment deadlines (previously 4/15/2020)
Note: Your state may or may not be following Federal requirements. Please talk with your tax professional about your specific state’s requirements at this time.
What Does Boundless Tax Recommend?
If you Owe Tax: This is great news for you! You have all the way until July 15, 2020 (an extra 3 months) to save up for your tax payment. As long as you pay before July 15th, your taxes are still on-time.
If you are Getting a Refund: We still encourage you to file your taxes as soon as you can. With the uncertainty of COVID-19, we encourage our clients to make an effort to receive their refunds sooner than later.
If you Haven’t Started: Get in contact with your tax professional. With this 3-month extension, we will have more bandwidth than we normally do.
Other Assistance from Boundless Tax
If you or someone you know had an in-person appointment at a tax preparation office that is now closed due to COVID-19, please contact us to schedule a consultation. Your returns will be completed by professionals, completely online.
We wish you and your family good health during this uncertain time.