The IRS recently announced special Federal income tax return filing and payment relief in response to the COVID-19 pandemic. According to the IRS, these are some of the most common questions taxpayers are asking in regards to these recent changes.*
- Who is eligible for relief under the Notice? Any taxpayer, individual, trust, estate, corporation or any type of unincorporated business entity with a Federal tax return or payment due on April 15, 2020. This refers to both 2019 Federal income tax payments and 2020 estimated Federal income tax payments, regardless of the amount owed.
- Do I need to be diagnosed with COVID-19, be quarantined or have any other impact to qualify for payment relief? You just have to meet the criteria in question 1.
- What are the form numbers of the specific Federal income tax returns whose filing deadlines have been postponed, from April 15 to July 15, under the Notice?
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- Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS
- Form 1041, 1041-N, 1041-QFT
- Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF
- Form 8960
- Form 8991
- 990-T: if that form was due to be filed on April 15, it has been postponed to July 15. For those filers whose Form 990-T is due on May 15 it is still due May 15, until further notice.
- Have filing dates been postponed for businesses or other entities that have filing due dates on dates besides April 15 (such as May 15 or June 15)? At this time, these dates have not been postponed.
- Does the relief provided in the Notice apply to payroll or excise taxes? Normal filing, payment, and direct deposit dates still apply to payroll and excise taxes.
- Does the relief provided in the Notice apply to estate and gift taxes? For estate taxes, normal filing and payment due dates apply. However, gift taxes filing and payments have been extended to July 15 under Notice 2020-20.
- Does the relief provided in the Notice apply to the filing of information returns? No, it only apples to the filing of Federal income tax returns due April 15, 2020.
- What do I need to do if I plan to file my 2019 income tax return by July 15 rather than April 15? You do not need to do anything except file and pay tax due with your return by July 15. There are no additional forms that need to be filled out. If you need more time beyond July 15 to file your return, you can request an automatic extension of time to file (see below).
- What if I am unable to file my 2019 tax return by July 15? Individuals who are unable to file their tax returns by July 15 can request an automatic extension. Your tax professional can help. If you properly estimate your 2019 tax liability and file an extension, your tax return will be due on October 15, 2020.
- I filed my 2019 income tax return and scheduled a payment of taxes for April 15, 2020. How do I avoid paying interest and penalties? To avoid taxes and penalties, pay your taxes in full by July 15, 2020. After July 15, interest and penalties will be charged for any amount that remains unpaid.
- Does the relief apply to state tax liabilities? No, it only applies to Federal income tax payments. You can check for details on state tax liabilities here.
- First quarter 2020 estimated tax income payments due on April 15, 2020 have been postponed. Have second quarter estimated tax payments due on June 15, 2020 been postponed as well? No, second quarter estimated tax payments remain due on June 15, 2020.
- Does this relief provide me more time to contribute money to my IRA for 2019? It does. In a particular year, contributions to your IRA can be made any time prior to or by the due date for filing your return for that year. With the extension of the filing deadline to July 15, 2020, you now have until that date to contribute money to your IRA for 2019.
- Does the relief provide me more time to contribute money to my HSA or Archer MSA for 2019? It does. In a particular year, contributions to your HAS or Archer MSA can be made any time prior to or by the due date for filing your return for that year. With the extension of the filing deadline to July 15, 2020, you now have until that date to contribute money to your HSA or Archer MSA for 2019.
*Please note, information for this blog post was derived from the IRS website here which sites that the answers to these questions “provide responses to general inquiries and are not citable as legal authority. Accordingly, the Treasury Department and the IRS are continuing to consider additional IRB guidance on the issues addressed in these FAQs.”