The IRS is extending the federal income tax filing deadline to July 15 as part of a growing effort to stem the financial pain from the coronavirus pandemic, Treasury Secretary Steven Mnuchin announced Friday.
There’s one bit of relief for businesses suffering from the effects of the COVID-19 pandemic: You now have until July 15, 2020 to pay your federal income tax. Read the full press release here.
If you owe taxes, the Treasury Department has extended the payment deadline for individuals and businesses for 90 days. The extension is automatic; you don’t have to file any extra forms to get it.
However, you still must file your tax return by April 15.
If you are expecting to receive a refund, the sooner you file, the sooner you’ll get that money. For tax return forms filed electronically, it usually takes about three weeks to receive your refund.
The July 15 payment extension applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates.
It also includes estimated tax payments for the 2020 tax year that were due on April 15.
The tax payment deadline is extended to July 15 for up to $10 million of the 2019 tax due.
Need More Time to File?
As in every other year, you can get a 6-month extension of your filing date from the IRS. You don’t need to give a reason, it is automatically granted after you apply.
File the application form through your tax professional, tax software or irs.gov Free File.
Be aware, though, that even with the filing extension, you would still owe taxes and penalties on any taxes that are unpaid as of July 16.
State Income Tax
The Treasury Department’s tax payment extension only applies to federal taxes, not your state’s. Check with your state agency to see what (if anything) they are changing to meet the COVID-19 crisis. Here’s a list of links to state revenue departments.
As small business specialists, Xendoo is well aware of the impacts COVID-19 has had — and will have — on the finances of owners and employees alike. We stand ready to help you through this difficult time. Experience the Xendoo difference with a one month free trial.