Earlier this year, in response to the novel coronavirus (COVID-19) crisis, the IRS postponed numerous federal tax filing and payment deadlines. If you took advantage of the extra time, it’s important not to forget about your return or lose sight of any important details.
For taxpayers with a 2019 federal income tax return or payment that had been due on April 15, 2020, the due date for filing and paying has been automatically postponed to July 15, 2020, regardless of the size of any payment owed. The taxpayer doesn’t have to file Form 4868, which allows automatic extensions for individuals, or Form 7004, which should be used for certain business income tax, information and other returns.
The relief also applies to estimated income tax payments (including tax payments on self-employment income) previously due on April 15, 2020, and June 15, 2020, for the taxpayer’s 2020 tax year. The IRS has clarified the postponed deadline also applies to numerous other federal tax filing and payment deadlines which had been on or after April 1, 2020, and before July 15, 2020, including gift and generation-skipping transfer tax filings and payments.
What about contributions to HSA or IRAs and when are those contributions due by? The COVID-19 relief also applies to Health Savings Accounts (HSA), Archer Medical Savings Accounts, and Individual Retirement Accounts (IRAs) and 2019 contributions are due by July 15, 2020.
As a result of the return filing and tax payment postponements, the period from April 1, 2020, through July 15, 2020, is disregarded in calculating any interest, penalty or addition to tax for failure to file the postponed income tax returns or pay the postponed income taxes.
Before July 15, 2020, it is possible deadlines could be postponed again or new extension relief could be made available. Otherwise, if you can’t file by July 15, 2020, as an individual, you can request an automatic extension until October 15, 2020. You must request the automatic extension by July 15, 2020 and to minimize interest and penalties when filing for an extension, you must properly estimate any 2019 tax liability due and pay this liability by July 15, 2020.
If you still need to file your 2019 tax return or need to file an extension, contact a KerberRose Trusted Tax Advisor today or visit www.kerberrose.com.