Due to COVID-19 concerns, the IRS and United States Treasury Department have extended the deadline for paying and filing income taxes, or tax day, until July 15, 2020. The extension applies to all returns and payments normally due after April 1, 2020, and before July 15, 2020. You should still file as soon as possible if you expect a refund.
Tax Returns Falling Under the Extended Filing Deadline
- Form 1040 US Individual Income Tax Return
- Form 1120 US Corporation Income Tax Return
- Form 1041 US Income Tax Return for Estates and Trusts
- Form 1120S US Income Tax Returns for an S Corporation
- Form 1065 US Return of Partnership Income
- Form 990 Return of Organization Exempt from Income Tax
- Form 990-T Exempt Organization Business Income Tax Return
- Form 990-PF Return of Private Foundation
- Form 706 US Estate (and Generation-Skipping Transfer) Tax Return
- Form 709 US Gift (and Generation-Skipping Transfer) Tax Return
For the above returns to be extended, their due date must be on or after April 1, 2020, and before July 15, 2020. Both original due dates and extended due dates falling between these dates are extended automatically to July 15, 2020.
For example, let’s assume your C-corp’s fiscal year ended on June 30, 2019. The original due date for filing your Form 1120 was Oct. 15, 2019, but you filed an extension of time to file until April 15, 2020. Since the return was extended properly and the extended due date falls between April 1 and July 15, your Form 1120 is extended further automatically to July 15, 2020. There is no action required by you.
Tax Returns That Don’t Fall Under the Extended Deadline
The tax deadline for income tax returns that were originally due on March 15, 2020, has not been extended. If you have not yet filed the return or applied for an extension, you should do so as soon as possible because the penalty for failure to file will be calculated starting on March 16, 2020. Income tax returns due on March 15, 2020, include:
- 2019 Form 1065 US Return of Partnership Income for calendar-year companies
- 2019 Form 1120S US Income Tax Return for an S Corporation for calendar-year companies
The extension also does not apply to Form 941 Employer’s Quarterly Federal Tax Return, federal excise tax returns, or state tax returns.
2019 Extended Payments Deadline
The automatic tax day extension applies to tax payments that would otherwise be due on or after April 1, 2020, and before July 15, 2020, including:
- Income tax
- Self-employment tax
- Gift and estate tax
- Unrelated business income tax by exempt organizations
- Excise tax on investment income by private foundations
2020 First Quarter Estimated Income Tax Payment
Taxpayers are required to pay their income tax evenly throughout the year. For most taxpayers, this is done automatically when taxes are withheld from their wages. However, small business owners often have to make four quarterly estimated tax payments during the year to avoid an underpayment penalty for paying their taxes too slow.
The estimated tax payments for the first and second quarter of 2020 are now due on July 15, 2020. Here are the revised payment deadlines for quarterly estimated taxes:
April 15, 2020
July 15, 2020
June 15, 2020
June 15, 2020
Sept. 15, 2020
Sept. 15, 2020
Jan. 15, 2021
Jan. 15, 2021
Last updated on 04/13/2020.
2019 IRA Contributions
Payments made to an individual retirement account (IRA) or Roth IRA by July 15, 2020, can be applied toward your 2019 contribution limits. The deadline for 2019 contributions was previously April 15, 2020, but was extended automatically with the deadline for 2019 individual income tax returns.
State Income Tax Deadlines
The automatic extension provided by the federal government does not apply to state income taxes. The deadline to file state income tax returns and make tax payments vary by state. Some states, but not all, have provided automatic extensions. Be sure to check with your state for the deadline and filing requirements.
Reasons to File Your Income Tax Return Early
You should file your income tax return early if you expect to receive a refund. There is no point in letting the IRS hold your money any longer than necessary.
Another good reason to file your 2019 return early is to provide the IRS with your direct deposit information for the $1,200 per taxpayer economic stimulus payments that were part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. If your 2018 return included direct deposit information, then the IRS should make your stimulus payment as an electronic deposit to that account.
If neither your 2018 nor 2019 returns included direct deposit information, you can provide the IRS your bank information on their website. Be careful of scammers. The IRS will never call or email you asking for your bank information. The only way to provide the information is to visit the IRS website and follow the instructions.
The IRS and Treasury Department extended until July 15, 2020, the time to file tax returns and make tax payments that are normally due on or after April 1, 2020, and before July 15, 2020. There are no forms to file or actions to take to receive the automatic extension. If you cannot file by July 15, 2020, you can request an additional extension by filing Form 7004 for C-corps (Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns) or Form 4868 (Application for Automatic Extension of Time To File US Individual Income Tax Return) for individuals.
You should file your return as soon as possible if you expect a refund, or if your 2018 tax return did not include bank information for a direct deposit. We recommend H&R Block Online for individuals and small businesses wanting to prepare their own tax returns. You can start for free and pay when you are ready to file your tax return.