As a follow up to my March 18, 2020 posting, the IRS has issued guidance concerning the extension to pay your taxes due to the Coronavirus. When I published the March 18 blog we knew two things were certain: Tax returns are still due by April 15 and if you owe taxes you will have a 90-day interest free penalty free period to pay the tax – due by July 15 – (“The Deferment Period”).
With the IRS guidance here is what we can add to the list of certainty.
- You must file your tax return by April 15 or file an extension – whether you are taking advantage of the Deferment Period or not
- If you do not file a tax return or extension by April 15, the late filing penalty may be assessed
- The April 15 estimated tax payment (first estimated tax payment for 2020 taxes) is due on July 15
- As the pronouncement doesn’t mention the following, assume that all 2016 amended returns that are to be filed need to be filed by April 15, 2020 in order to get the refund from 2016
The IRS is encouraging all taxpayers to file a tax return as soon as possible so that if you are due a refund you can get the refund as quickly as possible. The IRS announced that as of March 6, 52.7 million of the 65 million income tax returns filed have received refunds averaging $3,012.
There is now legislation pending to extend the tax filing in New Jersey from April 15, 2020 to June 30, 2020. The legislation passed in the State Assembly and now is in the State Senate. Presently there is no movement on moving the New York tax due date. You can monitor your particular state website to see if there is a change or you can click on this website by the American Institute of CPA’s for information (states’ tax developments here), Do not assume state agencies are going to allow the same 90 day extension as the Federal Government. All taxpayers are ultimately responsible for filing and paying their taxes.
I will do my best to keep everyone informed if there are changes. If you have not seen the Public Service Announcement by Max Brooks and his father Mel Brooks, see the link below. Let’s heed this advice. Make sure you un-mute the PSA.
https://twitter.com/maxbrooksauthor/status/1239624352305303552?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1239624352305303552&ref_url=https%3A%2F%2Fwww.jpost.com%2FDiaspora%2FProtecting-the-elderly-from-coronavirus-is-a-family-affair-for-Mel-Brooks-621265
Feel free to reach out to me to discuss your situation. Be safe everyone.