The Internal Revenue Service has announced that the deadline for tax filing and making payments has been extended to July 15, 2020. You do not have to file for an extension in this case.
The President of the United States issued a declaration using the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Treasury Secretary Steve Mnuchin tweeted the announcement first, but the IRS quickly followed up with official guidance about the change. Read the official guidelines here. The caps on relief ($1,000,000 for an individual and $10,000,000 for a corporation) have been lifted, so there is no cap limit on deferred payments. Penalties and interest on taxes are also deferred until July 15, 2020, but you will owe penalties and interest on any unpaid taxes due after that date.
Remember, this is a federal announcement which applies only to federal income tax payments, including self-employment, for 2019 taxable year. It does not include state taxes or any required filing other than the federal filing mentioned in the announcement.
This extension only applies to tax returns that are due on April 1, 2020. Any returns that were due March 16, 2020, or are due on May 15, 2020, will not be included in the relief date of July 15, 2020. Call your tax preparer if you are not sure you qualify for the extension.
For more Living on the Cheap articles:
- Save money by doing your own taxes
- Free or low-cost ways to file your taxes online
- Find free help with your taxes
- Deductions parents shouldn’t miss