UPDATE 3/20/2020 12:30pm EST: This post has been updated with most recent developments.
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. This means all 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 is Extended at This Point?
The following deadlines have been extended to July 15, 2020 effective immediately:
- 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 – this means you have all the way until July 15, 2020 (an extra 3 months) to save up for your tax payment and still file your taxes on-time.
If you are Getting a Refund: We still encourage you to file your taxes as soon as you have all your information. With the uncertainty of the COVID-19 situation, 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 at the end of March to be able to assist new clients in participating in our virtual tax preparation experience.
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 for a completely virtual tax preparation process. Your returns will be completed by professionals, completely online.
If you or someone you know had planned on utilizing VITA or AARP’s free/low-cost in-person tax preparation services, please note that all sites have been shut down at this time. Please contact Boundless Tax, and we will do whatever we can to help you get your taxes filed at a discounted rate.
We wish you and your family good health during this uncertain time.