IRS includes nonprofits in extended deadline

Last week I blogged about the IRS extending the 2020 tax deadline from April 15 to July 15. Then, later in the week, a blog was made about the IRS extending additional deadlines from between the dates of April 1 through July 14 to the new deadline of July 15. At that time, I noted the IRS had extended the business return for nonprofits (990-T), but they hadn’t extended the other exempt organization forms that are required to be filed by May 15. Fortunately, today the IRS sent out further guidance stating that the various nonprofit forms due between April 1 and July 15 are extended. This is great news for nonprofit organizations having to file a Form 990. 

Here are the additional forms being extended by today’s IRS notice. I’ve copied this out of the IRS email since they don’t have their website updated with this information yet.

  • Form 990-series annual information returns or notices (Forms 990, 990-EZ, 990-PF, 990-BL, 990-N (e-postcard))
  • Forms 8871 and 8872
  • Form 5227
  • Form 990-T
  • Form 1120-POL
  • Form 4720
  • Form 8976

Right now, I think it is pretty safe to assume that almost any filing due to the IRS between April 1 and July 14 has now been extended to July 15. If there are more updates, I will post them here. Stay tuned!

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.

2020 tax day moved from April 15 to July 15

Update 4/10/20. The IRS has extended more deadlines as of 4/9/20.  See my new post for updated information.

Tax season has been extended!

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.