Tax Day has been moved from April 15th to July 15th by Notice 2020-18 which issued on March 20, 2020. July 15th is the deadline for both filing returns and paying income tax. Contrary to a previous Notice, there is no limit on the amount that can be deferred to July 15th without interest or penalty. The postponement applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. There is no need to file any additional forms to qualify for this automatic relief. Forms 4868 and 7004 may still be filed for those in need of additional time beyond July 15th. The relief is solely with respect to income tax returns and payments due on April 15, 2020.
The first installment of estimated income tax is also extended to July 15th. As such, this irregularity results in the first payment being due on July 15th ostensibly after the second installment due date of June 15th. Hopefully, this will be cleared up by IRS. But keep in mind the large-scale relief package proposed by Senate Republicans postpones the estimated tax payment deadlines to October 15th.
Make sure to check your state as many have already announced they will follow the postponement put forth by IRS. Consider signing up for The CARES Act and its Impact on Individuals and Businesses (CARE) to be provided with the latest on any breaking legislation in addition to a comprehensive discussion of the relief efforts intended to help American employees and employers.
Nick Spoltore is VP of Tax & Advisory Content for Surgent CPE. Mr. Spoltore is a graduate of the University of Notre Dame and of Delaware Law School. Before joining Surgent, he practiced tax and business law at the firm of Heaney, Kilcoyne in Pennsylvania and also in Delaware.