Federal Tax Day 2020 has officially been moved to July 15, 2020. The Treasury Department and the Internal Revenue Service are providing special payment and filing relief to individuals and businesses in response to the COVID-19 Outbreak. The IRS urges taxpayers who are owed a refund to file as quickly as possible.
This relief includes:
Individuals: Income tax deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. The IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020. So if you owe a first quarter federal estimated tax payment that is normally due April 15, for 2020 that payment can now be made as late as July 15, 2020 without incurring a late payment penalty. The due date for 2020 second quarter estimated tax payments has not changed and remains due June 15, 2020.
Corporations: For C Corporations, income tax deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.
For California Taxes: The Franchise Tax Board has conformed to the Federal due date of July 15, 2020 .
The strategy of course then is if you have a refund coming to file as soon as possible so you can get your refund. If you owe we still need to figure that out and file your tax return, or put it on extension, in which case you will have until July 15, to make your payment.
Please reach out if you have questions.