Taxpayers will have an additional three months to file their returns as a result of a US Treasury Department directive issued Friday.
The Treasury had previously announced that it would defer tax payments for 90 days but had resisted calls to push back the filing date despite growing COVID-19 concerns.
The new deadline for filing returns is July 15.
“We are moving Tax Day from April 15 to July 15,” Secretary Steven Mnuchin tweeted Friday. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
Mnuchin added that individuals with refunds should still file as soon as possible.
“I encourage all taxpayers who may have tax refunds to file now to get your money,” he wrote.
A group of senators had introduced bipartisan legislation Thursday to push back the tax filing deadline.
The move is the latest in a series of actions taken on a federal level to blunt the economic impact of the coronavirus pandemic. Lawmakers in the U.S. Senate and House of Representatives are working on additional economic relief measures, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. That legislation would allow the Treasury to provide $208 billion in collateralized loans and loan guarantees to industries whose operations are jeopardized by the COVID-19 outbreak.
Just days earlier, Mnuchin announced that non-corporate filers can defer tax payments of up to $1 million and corporations can defer up to $10 million until July 15, 2020, without incurring interest or penalties.
The new guidance also changes the amount of tax payments that can be deferred until July 15. Prior guidance limited the amount to $10 million for a C corporation and $1 million for other filers. The new guidance removes the limitation on the amount of the payment that may be postponed. Any amounts due will not be subject to interest, penalties, or additions to tax through July 15, 2020.
Taxpayers can still request a six-month extension to file returns.
Traditional extensions such as these presumably still need to be filed by April 15, 2020.
The new deadlines apply only to federal income tax returns and payments only. Each state is responsible for setting its own filing and tax payment deadlines.
We encourage our clients to continue to submit your tax information to us as soon as possible. We have secure client portals available to allow information to be shared electronically during these trying times.
If you have questions about how these changes might affect your tax returns and filing situation, please contact a KraftCPAs representative. We’ll be glad to help.