Important Tax Deadlines Have Been Extended Until July: What You Should Know

The COVID-19 pandemic has caused a lot of sudden shifts in the worlds of business and finance. One of the big changes that affects all Americans is that the Treasury Department and Internal Revenue Service jointly announced it would extend the federal income tax filing due date from April 15 to July 15.

Here’s what you should know about these changes.

Extra time to file and pay

In addition to having extra time to turn in income tax return forms, taxpayers are also able to defer any income tax owed to the federal government to July 15 without accruing any interest or penalties, no matter how much money they owe. The ability to defer these payments applies to all taxpayers: individuals, corporations, non-corporate tax filers, self-employed individuals, trusts and estates.

Taxpayers will not need to file any extra forms or contact the IRS to be able to qualify for the extensions for tax filing or payment—this relief automatically applies to all taxpayers with no action necessary.

Any individuals who still need additional time to file beyond the new July 15 deadline will be able to request a filing extension in the usual manner. Options to request this extension include filing Form 4868 through their tax preparation professional or tax software or using the Free File link on IRS.gov. Meanwhile, businesses that require more time to get their tax paperwork in will need to file Form 7004 as usual. The only difference is that he due dates for these extension requests have moved back along with the due dates for filing and payments.

The IRS still encourages anyone who will be due a refund to file as soon as possible. Tax refunds are still being issued in a timely manner—most within 21 days after filing. Despite the extra time to get the paperwork in, it is still beneficial financially for individuals and businesses to get the paperwork done and either get their refund back or be able to plan for how much they’re going to owe the federal government by the new July 15 due date.

IRS Commissioner Chuck Rettig had the following to say in a statement about the unprecedented situation American taxpayers find themselves in:

“Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds. As a federal agency vital to the overall operations of our country, we ask for your personal support, your understanding, and your patience. I’m incredibly proud of our employees as we navigate through numerous different challenges in this very rapidly changing environment.”

MCG solutions is here to help you or your business with your tax preparation needs, even during the COVID-19 pandemic. For more information about the changes in the filing deadlines and the steps you need to take to complete your tax return, contact us today with your questions.