Ken Santema IRS

IRS extended more deadlines, including 2nd estimated payment

Me trying to keep up with IRS notices.

Earlier this week, I posted a blog about the IRS extending the April 15 deadline to July 15. One downside to the original extension is that other filing deadlines over the next couple of months were not impacted. Well, now the IRS has announced that most deadlines falling between April 15 and July 14 are now extended to July 15. This post will focus on a few areas impacted by this announcement. 

What types of returns are impacted

Here is part of what the IRS says in its notice:

Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.

IRS News Release IR-2020-66

It appears to apply to any type of tax entity that has a filing and payment deadline between April 1 and July 14. The notice also specifies that this announcement covers Americans working abroad. If you wonder about a specific form, I would suggest looking in IRS Notice 2020-23.

Estimated Tax Payments also extended

Earlier this week, I noted the IRS extended the 1st estimated tax payment from April 15 to July 15. The 2nd estimated tax payment, which is due June 15, was not extended. Now, this new IRS notice also extends the 2nd estimated tax payment to July 15. That means both the 1st and 2nd estimated tax payments for 2020 are now due on July 15. Here is an updated table of the estimated tax payment due dates for 2020:

PaymentDue Date
1July 15
2July 15
3September 15
4January 15
TY2020 Individual Estimated Tax Schedule

2016 refunds extended

Income tax returns with a refund have three years after the original filing date to be filed. If a return with a refund is filed more than three years after a filing date, the IRS will not issue that refund. As part of the further extensions, the IRS has extended the unclaimed 2016 refund deadline from April 15 to July 15. That is excellent news for the many Americans who still have not filed their 2016 return.

Stay tuned for more updates

Updates are constantly coming from the IRS. I will continue to post updates as time permits. In particular I am waiting of the IRS to clarify exempt organizations. While exempt organizations had their business return Form 990-T extended, there is no mention of the information return 990. That deadline may still be May 15. Plus I will be doing a post about making payments to IRA’s and HSAs/MSAs. Stay tuned!

Ken Santema IRS

1st 2020 Individual Estimated Tax Payment extended to July 15, but not the 2nd

Update 4/10/20. The IRS has extended more deadlines as of 4/9/20. The 2nd payment is now due July 15 as well. See my updated post. The post below will be left in its original state for posterity.

2020 Estimated Tax Voucher 1 from IRS website

Earlier this week, I noted the IRS officially moved the 2019 tax deadline from April 15, 2020, to three months later on July 15, 2020. Delaying the filing and paying of taxes will help many taxpayers during this difficult time. As part of the tax deadline delay, the IRS has also clarified that the first individual estimated tax payment for the tax year 2020 will also extend to July 15.

2020 individual estimated tax due dates

Here is what the estimated tax schedule for the tax year 2020 looks like after this extension.

PaymentDue Date
1July 15
2June 15
3September 15
4January 15
TY2020 Individual Estimated Tax Schedule

The 2nd payment is due before the 1st payment

Moving the first estimated tax payment to July 15 has created an odd situation. The second payment, which has is not extended to a later date, is still due on June 15. That means the second payment is due a month before the first payment.

Since the second payment has is not being delayed, individuals who pay estimated tax payments must keep in mind that they still have a payment due June 15.

Missing this deadline could mean having to pay some interest on the 2020 tax return during tax time in 2021. The IRS will charge interest on what they calculate should have been paid by June 15. For individuals with large estimated tax payments, that interest charge could add up to quite a bit. For the tax year 2020, the IRS currently has the interest rate set at 5% on the underpayment of estimated tax for individuals. 

No need to reprint voucher

For people that already printed out their 2020 estimated tax vouchers, there is no need to reprint those vouchers due to the date change. The same voucher will be accepted, even though it has a date of April 15. Just mail the first payment out by July 15 (and the second payment by June 15).

Stay tuned for the next post

This post briefly highlighted the extension of the first individual estimated tax payment to July 15 for the tax year 2020. Please don’t forget to make your June 15 payments if you make estimated tax payments. On Friday, we will have a post looking at how the tax deadline being extended impacts IRA and HSA/MSA payments for the tax year 2019.