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Amid the disruption to regular life from COVID-19, the Internal Revenue Service (IRS) on Friday March 20, 2020 pushed back the tax filing deadline for Individuals (Form 1040), Estates and Trusts (Form 1041) and Corporations (Form 1120) for ninety days to July 15, 2020. The IRS had previously announced that tax payment deadline for taxes due to the federal government has also been extended for ninety days for certain individuals and corporations. This has now been expanded and applies to all individuals, trusts and estates, and corporations. Taxpayers have until July 15, 2020 to pay their 2019 federal income taxes owed without interest or penalties.
1) What does this mean for me and my tax filings?
If you are an individual or corporation that is likely to owe taxes for 2019 then you now have an additional 3-months, until July 15, 2020, to both file your tax returns with the IRS and pay the federal government what you owe. However, if you want to get your taxes out of the way, you can file anytime between now and July 15th, while making sure your payment is sent to the IRS by July 15th.
2) What if I want to get my refund now?
The IRS is encouraging everyone who is due a refund to file their tax return as soon as possible. Most tax refunds are still being issued within 21 days. So, if you think you have a refund coming your way, it makes sense to file and get what you are owed now, rather than giving the IRS an interest-free loan on your money. You do however also have until July 15, 2020 to file your tax return or file an extension.
3) Did the IRS also extend the payment deadline for quarterly estimated tax payments for the 2020 tax year?
Yes, as part of the IRS’s extension of tax filing and payments deadline, they also extended the deadline to timely pay Q1 2020 estimated taxes for 90-days, meaning that companies, business owners, self-employed freelancers and other individuals can delay their Q1 2020 estimated tax payments (initially due April 15, 2020) until July 15, 2020 without penalty.
4) What is the deadline to extend my tax return, if I am unable to file my return by July 15, 2020?
Individuals who are not ready to file their 2019 tax return (1040) can extend the deadline to file the return by filing Form 4868 by July 15, 2020. Businesses and trusts who need more time to file use Form 7004 to extend their return. Payments to the IRS for your 2019 tax liability however is still due by July 15th, with or without an extension.
What the IRS has not yet clarified is whether the extensions to file will be for a full 6-months, as is typically the case when a taxpayer extends their tax return by April 15th, or if the IRS will stick with the original extension filing deadline of October 15, 2020 for individuals and corporations.
5) What does this mean for my state tax returns?
Many, but not all states have pushed back their payment and filing deadline for individual and business tax returns to match the July 15, 2020 date put forth by the IRS. Here is the latest regarding due dates for all 50 states and the District of Columbia as of March 23, 2020. For additional guidance and information check out the American Institute of Certified Public Accountant’s (AICPA) state tax filing guidance for the coronavirus pandemic.
- Alabama - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Alaska - Individuals are not required to file an income tax return with the state. Alaska has yet to issue guidance or an extension to businesses that are required to normally file their tax return by April 15th.
- Arizona - Governor Ducey has instructed the Arizona Department of Revenue to move the filing and payment deadline for state income taxes to July 15, 2020. Reference
- Arkansas - Governor Hutchinson has announced the state deadline to file and pay individual income taxes has been extended to July 15, matching the federal extension. No official guidance has yet been provided regarding the deadline for businesses. Reference
- California - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Colorado - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Connecticut - The state has extended filing and payment deadlines for personal income tax returns to July 15, 2020. The filing deadline for business returns has so far been extended to June 15, 2020. Reference 1 | Reference 2
- Delaware - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- District of Columbia - Mayor Bowser and CFO Jeffrey DeWitt annouced that the deadline for taxpayers to file and pay their 2019 District of Columbia individual and fiduciary income tax returns (D-40, D-41, and D-40B), partnership tax returns (D-65), and franchise tax returns (D-20, D-30) is extended to July 15, 2020. Reference
- Florida - Individuals are not required to file an income tax return with the state. Florida has yet to issue an official extension to businesses, however the Department of Revenue's General Tax Administration (GTA) has announced that it is closely monitoring any future guidance issued by the Internal Revenue Service for potential corporate income tax due date extensions. Reference
- Georgia - Governor Kemp on March 23rd during a press conference announced that the state will be extending the filing and payment deadline for both individuals and businesses to July 15, 2020. Reference
- Hawaii - The due date for filing 2019 state income tax returns due between April 20, 2020 and June 20, 2020 is postponed to July 20, 2020. Reference
- Idaho - Governor Little, on March 23rd, announced that the state has extended the deadline to file state income tax returns to June 15, 2020. Reference
- Illinois - The state has yet to announce an extension to file or make payment for returns due originally due on April 15, 2020. The House and Senate will next be in on March 24th.
- Indiana -Individual tax returns and payments, along with estimated payments originally due by April 15, 2020 are now due on or before July 15, 2020. Corporate tax returns and payments, along with estimated payments originally due by April 15 or April 20 are now due on or before July 15, 2020. Those originally due on May 15, 2020, are now due on August 17, 2020. Reference
- Iowa - The Iowa Department of Revenue has extended the filing and payment deadline for several state tax types, including income tax. The order extends filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, to a new deadline of July 31, 2020. Reference
- Kansas - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Kentucky - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Louisiana - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Maine - The state has yet to announce an extension to file or make payment for returns due originally due on April 15, 2020. Reference
- Maryland - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Massachusetts - The state has yet to change the income tax payment or filing deadline, however it has provided some tax relief to the restaurant and hospitality industries and asked that we "Please check back for new deadlines for payments." Reference
- Michigan - The state has yet to change the income tax payment or filing deadline, however small businesses scheduled to make their monthly sales, use and withholding tax payments on March 20 can postpone filing and payment requirements until April 20. Reference
- Minnesota - Individual income tax returns and payments for 2019 are now due on or before July 15, 2020. However, this does not include Q1 2020 estimates, which remain due April 15, 2020. Minnesota's April 15th due date has not changed for Corporation Franchise, S Corporation, Partnership, or Fiduciary taxes. Reference
- Mississippi - The state has extended the filing and payment deadline for both individuals and business income tax returns to May 15, 2020. Yes that's right, MAY 15th not July 15th, a full two months ahead of the IRS deadline and somewhat of an outlier. Reference
- Missouri - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Montana - Governor Bullock has extended the payment and filing deadlines for 2019 individual income taxpayers to July 15, 2020, and the state has announced that they "will be lenient in waiving penalties and interest associated with late tax payments and the department will work with taxpayers on an individual basis." The state has yet to alter the due date for corporation tax returns, which are normally due May 15th of each year. Reference
- Nebraska - Governor Ricketts has announced that the state will be extending the deadline to file and pay income tax returns to July 15, 2020 to match the IRS's new deadline. Reference
- Nevada - Not applicable. Both individuals and businesses are not required to file an income tax return with the state.
- New Hampshire - The state has made no change in deadlines for business tax, interest and dividends tax, meals and rentals tax. If paid in full by April 15, can automatically extend 7 months NH business tax and dividends tax return. Reference
- New Jersey - The state has passed legislation in the NJ House and NJ Senate to extend the deadline to file annual and quarterly state gross income tax returns and corporation business tax returns originally due on or before April 15 to match the IRS's new deadline of July 15, 2020. Reference
- New Mexico - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- New York - At this time, the New York State Tax Department has not extended the deadline to file personal income tax or other tax returns. The state has agreed to waive fines for businesses that missed the sales tax deadline of March 20, 2020. Reference
- North Carolina - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. However, the department cannot offer relief from interest charged to filings after April 15. Unless state law is changed, tax payments received after April 15 will be charged accruing interest over the period from April 15 until the date of payment. Reference
- North Dakota - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Ohio - No official guidance has yet been provided by the state regarding the filing deadline for individuals. Businesses are not required to file an income tax return with the state.
- Oklahoma - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Oregon - The state has not yet changed the filing and payment deadline for both individuals and business income tax returns. The state of Oregon has indicated they "will have certainty on potential extensions by Wednesday, March 25." Reference
- Pennsylvania - Individual tax returns and payments, along with estimated payments originally due by April 15, 2020 are now due on or before July 15, 2020. The state has not changed the original due date for corporate tax returns. Reference
- Rhode Island - The state has announced that the Division of Taxation will mirror the federal extensions and is awaiting the issuance of written guidance from the IRS. The Division intends to post further guidance as soon as possible. Reference
- South Carolina - Governor McMaster has directed the Department of Revenue to conform the state’s income tax deadline to July 15th, which is the new federal income tax deadline. Other state taxes will remain delayed until June 1st, as previously ordered. Reference
- South Dakota - Not applicable. Both individuals and businesses are not required to file an income tax return with the state.
- Tennessee - The state has yet to announce any changes to the filing deadline for business tax returns. If you are an individual filer, Tennessee does not tax individuals' earned income, so you are not required to file an individual Tennessee tax return. The state only taxes investment income from stocks and bonds (at a flat rate of 5%).
- Texas - Not applicable. Both individuals and businesses are not required to file an income tax return with the state.
- Utah - The due date of the Utah individual income tax return is the same day as the due date of the federal individual income tax return by statute, meaning that the IRS extension of the deadline to July 15, 2020 automatically extends the deadline for individual filers in Utah. The state has yet to change the income tax payment or filing deadline for other types of returns. Per the state's March 19th announcement "the deadline for payment of Utah state taxes has not changed at this time." Reference 1 | Reference 2
- Vermont - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Vermont will also provide relief to businesses owing Meals and Rooms Tax and Sales and Use Tax by foregoing any penalty or interest for those who are not able to meet the March 25 or April 25 deadlines. Reference
- Virginia - Governor Northam has requested the Department of Taxation to extend the due date of payment of Virginia individual and corporate income taxes. While filing deadlines remain the same, the due date for individual and corporate income tax will now be June 1, 2020. Reference
- Washington - Not applicable. Both individuals and businesses are not required to file an income tax return with the state.
- West Virginia - At this time the payment and filing deadline for personal income taxes and corporation net income taxes remains April 15, 2020. Reference
- Wisconsin - The state has extended the filing and payment deadline for both individuals and business income tax returns to July 15, 2020. Reference
- Wyoming - Not applicable. Both individuals and businesses are not required to file an income tax return with the state.