The Internal Revenue Service (IRS) has extended the due date for tax returns and payments due April 15, 2020 to July 15, 2020. Individual income tax returns (Form 1040), Trust and Estate income tax returns (Form 1041), and C-corporations (Form 1120) have until July 15, 2020 to file their tax returns without penalty. Tax payments due April 15, 2020 are also deferred until July 15, 2020 with no penalty or interest assessed. No extension request needs to be filed relating to the July 15, 2020 due date change. An extension request is required to extend the filing deadline until October 15, 2020.
This means that the April 15th deadline for filing returns and paying taxes owed has been changed this year. IRS recommends that taxpayers due a refund file now so that you may receive your refund as soon as possible.
The due date for making the first estimated tax payment for 2020 (due April 15, 2020) is also extended to July 15, 2020. The second estimated tax payment (due June 15, 2020) is still due June 15, 2020.
The CARES act (Coronavirus Aid, Relief, and Economic Security Act) extends the payments due date for calendar year 2020 payroll taxes until December 31, 2020 for 50% of the taxes owed and December 31, 2021 for the remainder. The CARES act provides for direct payments to taxpayers that have filed their 2018 and/or 2019 income tax returns. Those who have filed their 2018 or 2019 income tax returns and have requested their refund to be direct deposit will have their direct payment deposited into their bank account sooner than those who will receive their direct payment by check. The direct payments are considered advance refund of taxes for 2020 and not taxable as income.
Income tax forms due March 15, 2020 (Form 1065 and Form 1120-S for calendar year partnerships and S-corporations) have not had their due dates extended. Similarly forms that are due May 15, 2020 (Form 990 – calendar year not-for-profits) have not had their due dates extended. Only tax returns due April 15, 2020 have had their due date extended to July 15, 2020.
Tom Tarrillion is an associate at Tarrillion Cox & Associates CPAs, with offices in Devine, Castroville and Helotes.
By Tom Tarrillion
Tarrillion Cox & Associates
Certified Public Accountants