Treasury Secretary Steven Mnuchin announced via Twitter this morning that the April 15 tax filing deadline is extended to July 15. This supplements the tax payment extension to July 15 that was announced March 17 and published by the IRS on March 18. Secretary Mnuchin tweeted, “At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
The official IRS announcement is expected shortly. Based on Secretary Mnuchin’s announcement, the filing extension appears to apply to all taxpayers with tax filing and payment obligations on April 15. Further, it appears that the tax filing and payment relief applies automatically, so taxpayers do not need to file any forms or request an extension. As a result, individuals and businesses will have until July 15, 2020, to file returns and pay any taxes that were originally due April 15.
The official IRS announcement hopefully will clarify a number of additional details, including the ability to make IRA contributions for 2019 by July 15, 2020. Also, it is unclear how the filing extension will dovetail with the tax payment extension. Because the previously announced tax payment extension applies to individual tax payments up to $1 million and corporate tax payments up to $10 million, taxpayers conceivably remain subject to tax payment obligations on April 15 for any amounts in excess of these levels. Hopefully the IRS guidance will clarify this nuance.
The earlier tax payment extension announced by the IRS also extends the first quarter estimated tax payment obligation from April 15, 2020 to July 15, 2020, but not the second quarter estimated tax payment obligation due June 15, 2020. Separately, legislation was introduced in the Senate on March 19 that would delay the due date for estimated tax payments until October 15, 2020. This “Phase 3” emergency legislation includes other measures that would provide direct cash payments to individuals and other economic relief measures to businesses.
We will keep you apprised of the Phase 3 emergency legislation as it is negotiated by Congress, as well as any IRS announcements that formalize the tax filing extension. Should you have any questions regarding the tax filing extension, please contact us.
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