March 25, 2020 | Read Time: 8 Minutes
The Internal Revenue Service (IRS) has issued guidance with regard to their notice last week that both the tax-filing and tax payment deadline has been extended to July 15. The IRS has clarified that the deadline to make Individual Retirement Account (IRA) and Roth IRA contributions for 2019 is now July 15, 2020; taxpayers do not have to file an extension until July 15; those extended returns are still due on October 15; and that second quarter estimated tax payments are still due June 15, 2020.
Here are some items to know from the IRS guidance:
Do I have to be sick, or quarantined, to qualify to use the new deadlines?
Do I have an extension to pay my payroll or excise taxes?
No, normal filing, payment and deposit due dates continue to apply to both payroll and excise taxes.
Are there additional forms I need to file to use the July 15 deadline?
No, file and pay any tax due with your return by July 15. You don’t need to file any additional forms or contact the IRS to qualify for this new deadline.
I have already filed my 2019 income tax return and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?
No, but you can take action to cancel and reschedule the payment as follows:
What if I can’t file my tax return by July 15, 2020?
Individuals can request an automatic extension of the time to file (but not to pay) by filing Form 4868 by July 15, 2020. The extended deadline to file returns remains October 15, 2020, as it would have been. Tax payment is still due when requesting this additional extension.
Is my deadline to contribute to an IRA, Roth IRA, Health Savings Account or Archer MSA also extended?
Yes, this deadline is postponed to July 15, 2020 as well.
My first-quarter estimated tax payment is now due on July 15, 2020, what about my second-quarter payment, due June 15?
As of now, the second-quarter estimated payment is still due June 15.
I haven’t filed my 2016 return and claim for refund, the deadline to do so is April 15, 2020, will that now be delayed?
No. The extension is only for Federal income tax returns for the 2019 taxable year. The Notice does not extend relief to any filings or payments for taxable year 2016.
What doesn’t qualify for the three-month postponement?
To name a few: estate and gift taxes, excise taxes, information returns such as 1099 forms, and payroll taxes (Congress is considering a payroll-tax deferral). Tax items that don’t have April 15 deadlines, such as the May 15 deadline for Form 990, doesn’t qualify for the extension.
The entirety of the IRS’ guidance is in the form of a Q&A, which can be found here:https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers.
Yesterday afternoon, the State of Wisconsin elected to follow the Department of Treasury’s extension of tax filings and payments to July 15, 2020. The release from the Department of Revenue can be found here: https://www.revenue.wi.gov/Pages/News/2020/Tax-Deadline-Extended.pdf . It mirrors the IRS’ Notice released late Friday night.
Huberty is continuing to track guidance on deadline-driven deductions and contributions and will have more guidance out as soon as we have clarification from the government.
Yesterday the IRS issued Notice 2020-18, formalizing an announcement from Treasury Secretary Mnuchin extending the tax filing deadline. It clarifies the following:
We are awaiting clarification on the deadline for contributions to IRAs/HSAs/MSAs.; based on the Internal Revenue Code, which references the filing deadline, our presumption is that these contributions can still be made until July 15, 2020, your Huberty team will continue to closely monitor and provide guidance as clarifications become available.
Additionally, there still has been no update provided by the Wisconsin Department of Revenue at this time.
As coronavirus (COVID-19) continues to spread, the Congress and the Department of Treasury provided meaningful guidance and legislation to mitigate the impact on Americans. View the report.
The special report provides detail on the following highlights:
Please note, the guidance from the Department of Treasury did not delay the filing deadline, individual income tax returns are still due on April 15th, payments of any balances due (under $1,000,000 for individuals) are now due July 15th.
Additional legislation including a large stimulus package is expected to be revealed soon.
Yesterday the nation got an update from the Department of Treasury with regard to income tax deadlines. Please note, as of now, there is not an automatic 90-day extension for taxpayers to file their tax returns, only a 90-day extension of required payments for taxpayers listed below. This differs from original expectations that the April 15th deadline would be extended.
More specifically, yesterday, Treasury Secretary Steven Mnuchin said that individual taxpayers who owe up to a million dollars in federal taxes can defer paying until July 15th, while corporations can defer up to $10 million under a 90-day interest-free plan. Mnuchin also announced today that the Treasury Department would not extend the deadline to file taxes by the April 15th deadline. He added: “We encourage Americans who can file taxes to continue to file taxes on April 15th because for many Americans, you will get tax refunds, and we don’t want you to lose out on those tax refunds.” For more information on the full release, visit the Journal of Accountancy site.
The IRS has set up a Coronavirus Tax Relief page to disseminate information to help taxpayers, businesses, and others affected by the coronavirus.
This update is only from the Department of Treasury and not from the Wisconsin Department of Revenue. It is our team’s understanding that Wisconsin is reviewing these updates and will be providing guidance as to the State of Wisconsin’s position in the coming days. Additionally, Secretary Mnuchin made no reference to first and second quarter estimated tax payments being extended; these are due on April 15th and June 15th, respectively. Huberty’s team of dedicated professionals are closely monitoring this tax law legislation and any additional legislation that will be passed, and we will provide updates as they become available.