Update 4/10/20. The IRS has extended more deadlines as of 4/9/20. See my new post for updated information.
Recently, in response to the coronavirus pandemic, the IRS announced the 2020 tax day had been changed from April 15 to July 15. This motivation behind this move was to help taxpayers avoid penalties and interest if the current social distancing and quarantine policies are preventing the timely filing of tax returns. In this post, I will highlight a few key details of this tax deadline change.
What kind of tax returns have a different tax deadline?
Individual tax returns that are usually due on April 15 have their deadline extended to July 15. There are other types of tax returns typically due on April 15 have also been extended to July 15. The IRS FAQ about this extension lists the types of entities and forms that have been extended. Generally, all individual, trust, estate, corporation, and unincorporated business entity that normally have a filing deadline of April 15 are extended to July 15. If you have a question about whether the extension applies to your business, either refer to the IRS guidance or contact us.
Partnerships and S-Corp are NOT extended.
Partnerships and S-Corps had a due day of March 15 and should have already been filed earlier this year. The extension of the April 15 deadline does not impact the filing deadline of Partnership (Form 1065) or S-Corp (Form 1120S) returns.
The extension to July 15 is automatic.
Many people have been asking if they need to file for an extension to take advantage of the new July 15 deadline. No. The IRS moved the tax deadline, so IRS extension forms for individual returns (4868) or business returns (7004) does not need to be filed.
Filing an extension past July 15.
Some individuals or businesses may be unable to meet the July 15 filing deadline. In those cases, Form 4686 (individuals) or Form 7004 (businesses) can be utilized to file an extension. This extension will only extend the filing deadline to October 15, which is the standard extension deadline. July 15 is the deadline to submit an extension.
It should also be noted that, as always, an extension to file is NOT an extension to pay. If you owe taxes, you will pay penalties and interest for tax payments made beyond July 15. Only the penalty for filing late is removed by filing an extension to October 15. And then if the return isn’t submitted by October 15, a penalty for filing late will also be added by the IRS. It is best to make an estimated payment of what you think will be owed when extending past July 15. Doing so will reduce or eliminate possible payment penalties when you do eventually file your taxes.
More information in future posts.
This post discussed some of the basic details of the IRS moving tax day to July 15. In future posts, other topics surrounding the new deadline will be highlighted. These topics include HSAs/MSAs, IRA contributions, and estimated tax payments. If there are any other questions you have about the deadline extensions, contact us, and we will assist you if possible and may do a blog post focused on that topic.