Tax Filing Deadline Remains April 15 – Payment Due Extended to July 15

3/20/2020 – UPDATE – Filing Deadline Moved to 7/15/2020

3/19/2020 – Tax Filing Deadline Remains April 15 – Payment Due Extended to July 15

The IRS formally announced that you must either file your tax return or file an extension form by April 15 to avoid penalties. If you do not file your return or an extension by the April 15 deadline, you will be subject to late filing penalties if you owe money with your return.

The IRS also announced that the deadline for payment of 2019 federal income taxes has been extended from April 15, 2020 to July 15, 2020. Any taxpayer with a federal tax payment due now has until July 15, 2020 to make that payment without being subjected to penalties or interest.

The provision applies to individual taxpayers for payments of up to $1 million, regardless of filing status (individual or joint). The provision also applies to 2020 estimated tax payments (including self-employment taxes) that would also be due on April 15. The $1 million limit applies to the aggregate of the balance due on the 2019 return as well as any estimated tax payment due on April 15, 2020. A similar provision applies to corporations except the limitation is $10 million.

It is important to note that this automatic extension applies only to tax payments, not to the filing of returns. To avoid penalties for late filing of returns, you must either file your return or file an extension form by April 15. No payment is needed with the extension if the balance due on the return (plus your first-quarter estimate) is less than $1 million.

We continue to await guidance from states as well as Ohio and Kentucky localities as to whether they follow similar policies. Please contact a Kirsch CPA Group representative if you have additional questions.

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