Filing and Payment Deadlines Deferred

April 3, 2020 by

After briefly offering more limited relief, the IRS almost immediately pivoted to a policy that provides the following to all taxpayers including individuals, trusts, estates, partnerships, associations, companies and corporations regardless of whether or how much they are affected by COVID-19:

  1. For a taxpayer with a Federal income tax return or a Federal income tax payment due on April 15, 2020, the due date for filling and paying is automatically postponed to July 15, 2020, regardless of the size of the payment owed.
  2. The taxpayer doesn’t have to file Form 4686 (automatic extensions for individuals) or Form 7004 (certain other automatic extensions) to get the extension.
  3. The relief is for
    1. Federal income tax payments (including tax payments on self-employment income) and Federal income tax returns due on April 15, 2020 for the person’s 2019 tax year, and
    2. Federal estimated income tax payments (including tax payments on self-employment income) due on April 15, 2020 for the person’s 2020 tax year.
  4. No extension is provided for the payment or deposit of any other type of Federal tax (i.e. estate or gift taxes) or the filing of any Federal information return.
  5. As a result of the return filing and tax payment postponement from April 15, 2020, to July 15, 2020, that period is disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the postponed income tax returns or pay the postponed income taxes.  Interest, penalties, and additions to tax will begin to accrue again on July 16, 2020.

The above apply to the taxpayer’s federal income tax return.  Although the Minnesota Department of Revenue announced an extension to file and pay taxes from April 15, 2020 to July 15, 2020, not all of the IRS extensions were adopted by Minnesota.  The grace period only apply’s to the April 15, 2020 income tax return and related payment for the 2019 tax year and does not include estimated tax payments due April 15, 2020 for the 2020 tax year.

Please feel free to contact us with additional questions or concerns on these extensions.

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