IRS Extends More Filing Deadlines

The Coronavirus (COVID-19) emergency has impacted both individuals and businesses. The stay at home and forced business closures have sharply reduced demand for several products and services leaving businesses with no means to generate revenue. This reality forced many to make the difficult decision to terminate or furlough employees. Without a source of income, many individuals have been unable to meet expenses such as mortgage, rent and other essential payments. It was against this backdrop that Treasury initially announced a 90-day extension to make income tax payments and shortly thereafter made the same for income tax payments. Although the change was welcome news, it failed to address the various filings and payments certain individuals and businesses were required to make. On April 9. 2020, the IRS issued Notice 2020-18 which makes additional extensions.

Expanded Tax Relief

The primary purpose of the announcement was to allow individuals, trusts, estates, corporations, and others to receive extra time to file returns and make estimated tax payments. This means that any taxpayer, including those living abroad, now have until July 15, 2020, to file a federal income tax return and make necessary payments (without penalty). The announcement expands the initial tax relief made earlier in the year.

Estimated Tax Payments

It also extended relief for estimated tax payments currently due on June 15, 2020. Moving forward any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can now wait until July 15^th to make necessary payments without penalties.

2016 Tax Refunds

When seeking a prior-year tax refund there is a three-year window of opportunity to revisit filings and claim a refund. This means that taxpayers have until April 15^th to receive a 2016 refund. However, the recent extension means that taxpayers now have until July 15^th to request a refund.  

Individual Filing Extensions

Individual taxpayers that need additional time beyond the July 15^th deadline to file can request an extension until October 15, 2020. However, it’s important to remember that an extension to file is not an extension to pay. Those who need the extension should work with their accountant to estimate tax liability and make outstanding payments by the July 15^th deadline to avoid additional penalties and interest.

Contact Us

The filing extension provides needed relief for many Atlanta businesses. If you have questions about the extension or would like assistance with COVID-19 tax incentives, planning or filings, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to guiding you through this challenging time.