The tax deadline 2019 for tax return filing and payment has been extended in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency.
IRS Extension Explained
What Is the New Tax Deadline 2019?
The tax deadline for 2019 has now been extended to July 15, the Inland Revenue Service (IRS), and The Treasury Department confirms. The IRS has extended the filing date deadline and federal tax payments irrespective of the sum owed.
Taxpayers can defer federal income tax payments without getting any penalties and interest.
Who Does the IRS Extension Affect?
Anyone with a Federal income tax return or payment due on April 15, 2020, qualifies for relief under the Notice. This involves any taxpayer, such as an individual, a corporation, an estate, a trust, or any type of unincorporated business entity.
You don’t have to be in quarantine, or sick, or have any other impact from COVID-19 to qualify for the relief. As a blanket relief, you only need to have a Federal income tax return or payment due on April 15, 2020, as described above.
What Is the Payment?
The payment due describes both 2019 Federal income tax payments and 2020 estimated Federal income tax payments. This includes reimbursements of tax on self-employment income and regardless of the amount owed.
Which Form Numbers Does This Relate To?
The Notice means that the following forms are subject to delay for filing and payment of Federal income taxes:
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
What Should I Do Now?
Because the Federal tax filing and payment relief is an automatic extension, you don’t need to file any additional forms or call the IRS to qualify. To receive your refund most quickly, file your return as soon as possible through electronic filing and direct deposits. Generally, tax refunds will still be issued within 21 days.
You can also request a further extension beyond July 15 if you require more time. To do this, it must be done before July 15 through your tax professional, form 4868, or by the Free File link on IRS.gov. Businesses should use form 7004.
If you already filled your 2019 income tax return, the payment won’t be rescheduled unless you request it. The refund will be received on the date you chose. If you want to reschedule the payment, there are options via IRS Direct Pay, Electronic Federal Tax Payment Systems (EFTPS), contacting the U.S. Treasury Financial Agent at 888-353-4537, or through your card processor.
How Are the IRS Handling the Situation?
Notice 2020-18 follows Trump’s emergency declaration pursuant to the Stafford Act. The 1998 Stafford Act is an amendment to the Disaster Relief Act 1974, which allows federal law to provide financial and physical assistance to citizens when the president declares a disaster or state of emergency.
The IRS is a central federal agency and paramount to the general operation of the U.S. The IRS has asked citizens for their understanding, perseverance, and continued support during this challenging and rapidly evolving time.
The IRS is limiting some operations at the moment but will continue with their mission-critical operations to assist the country, and that includes receiving tax returns and providing refunds.
The IRS has been making efforts to aid people facing challenges of COVID-19, including a series of actions to help taxpayers by offering relief on a variety of issues extending from postponing compliance actions to easing payment guidelines.
In addition to extending tax deadlines and working on new legislation, the IRS is pursuing unique actions to alleviate the burden on people tackling tax issues. During this challenging time, they want people to focus on their well-being, work together, and help each other and those less privileged.
The IRS will continue to scrutinize matters associated with the COVID-19 virus, and updates to news will be published on a special Coronavirus page on IRS.gov.
The U.S. Treasury Department and the IRS will issue further guidance as required and continue working with Congress on legislation to give more relief to American citizens.
Much of the financial support provided or planned because of the COVID-19 panic has been mainly for workers and businesses. Although this is important, it’s now time for the government to be thinking about retirees significantly affected by the present market volatility.
How will the change affect you? If you have any questions on the tax deadline, feel free to ask below?