16 Tax Deadline Changes You Need To Know
Due to the coronavirus pandemic, there have been a few tax deadline changes. So if you are an individual payer, employee, or employer, it is important that you understand the modifications, especially when it comes to the due dates so you will be able to avoid fines or penalties.
Highlighted below are some important changes that you need to know:
Tax Return Deadline
As of March 20, 2020, the Treasury Department has announced that the new deadline for tax returns is now July 20, 2020 instead of April 15th. This is in lieu of the 90-day extension that was given due to the outbreak of the coronavirus.
Tax Payment Deadline
The same as the tax return deadline, the tax payment deadline has also been moved from April 15, 2020 to July 2020.
Eligibility for the Tax Filing and Payment Deferral
Anyone who is filing the individual form 1040, corporation form 1120, trust and estates form 1041, as as well as fiscal year partnerships, association, and companies with due dates on April 15, 2020 are eligible to use the special coronavirus tax extension.
Furthermore, you don’t have to be sick, quarantined, or have any direct impact from the coronavirus to qualify for relief.
What to Do to Delay Your Filing and Payment
Follow the usual process of filing and payment by July 15 as long as you are qualified for the special coronavirus tax extension.
What to Do to Extend the Time to Prepare Your Return
If you think that you are unable to prepare your return by July 15, you should file form 4868 as a request to extend your filing up to October 15. The due date for your payment, though, is still July 15, 2020.
Types of Payments Covered by the Deferral
The deferral covers income tax payments and estimated tax payments (due April 15, 2020), including interest and penalties. However, if your payments were due before the 1st of April, you are not qualified for the extension. You can then expect additional charges.
Amount That Can Be Deferred
The good news is, there is no limit to the amount that can be deferred. As long as your original due date fall within the covered period, you are eligible for the deferral scheme.
Estimated Tax Payments
The due dates of payments for estimated tax (1st and 2nd quarter) have been extended to July 15, 2020.
State Tax Deferral
Each state has issued its own guidelines regarding state tax deferrals, so it would be best to check with your respective state. You can call them directly or visit their website to see their announcement regarding this matter.
Filing of FBAR (FinCEN Form 114)
FinCEN has announced back in 2017 that the filing date is now October 15. Therefore, there is no need to request an extension.
Fiscal Year Filer With an Extended Due Date of April 15, 2020
Notice 2020-23 applies to Federal income tax returns and payments. All income tax return filings and payments due on or after April 1, 2020 and before July 15, 2020 (regardless if that was the original or extended due date) will be due on July 15th.
Deadlines for Businesses, Exempt Organizations, or Other Entities
All businesses, exempt organizations, or other entities that have due dates anywhere from April 1st to July 15th are required to file and pay on July 15, 2020.
Partnerships and S-Corporations
Return filings that were due March 16, 2020 are not covered by the special coronavirus extension. However, if the due date was on or after April 1st or before July 15th, the new due date is July 15, 2020 just like the other types of taxpayers that we have mentioned earlier.
Filing and Payment Deadlines for Foreign Trusts and Estates
Forms 1040-NR and Federal income tax payments due for foreign trusts and estates on or after April 1, 2020, and before July 15, 2020, are now due on July 15, 2020 as well.
Not all excise taxes are covered by Notice 2020-23. To be specific, the extension only applies to any excise tax payments on investment income and return filings on Form 990-PF, and excise tax payments and return filings on Form 4720, due on or after April 1, 2020, and before July 15, 2020. The new due date is July 15, 2020 too.
Estate and Gift Taxes
Any estate and gift tax return filings and payments due on or after April 1, 2020, and before July 15, 2020. are also extended to July 15, 2020.
These are just some of the important deadline changes that you need to know. Take note that the IRS is still accepting filings and processing of refunds. For more information, you can contact your tax accountant or the IRS directly. You can also visit their website to learn more about the changes that have been implemented due to the outbreak of COVID-19.