Many have been calling it the never-ending tax season.
The changing tax deadline, along with a variety of potential tax incentives resulting from the COVID-19 pandemic, remains at the point of conversation during this tax season.
Until now, it has been unclear whether this tax season’s deadline would change yet again to help US citizens cope with the financial setbacks brought about by the coronavirus this year.
Background On This Tax Deadline
Due to economic downturns created by the coronavirus, the IRS and US Treasury officials changed the tax deadline from April 15 to July 15 back in March.
Until last week, the further postponement of the US tax deadline has remained a topic of discussion.
On March 13, 2020, the President of the United States issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (Emergency Declaration). The Emergency Declaration instructed the Secretary of the Treasury “to provide relief from tax deadlines to Americans who have been adversely affected by the COVID-19 emergency”.
On March 18, 2020, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued Notice 2020-17 providing relief under section 7508A(a), which postponed the due date for certain Federal income tax payments from April 15, 2020, until July 15, 2020.
For an affected taxpayer concerning specified filing and payment obligations, the due date for filing specified forms and making specified payments was automatically postponed to July 15, 2020.
This relief was automatic; affected taxpayers did not have to call the IRS or file any extension forms, or send letters or other documents to receive this relief. Footnote 1
IRS Keeps July 15 Tax Deadline
Treasury Secretary Steven Mnuchin announced the change in the tax return deadline back in March and continued to discuss the possibility of pushing the tax deadline beyond July 15 until recently.
The US Treasury department has drawn the line at the administration’s consideration of such a move.
The IRS won’t extend the deadline, but they will provide payment options to help taxpayers in need as stated below:
“The IRS understands that those affected by the coronavirus may not be able to pay their balances in full by July 15, but we have many payment options to help taxpayers,” IRS Commissioner Chuck Rettig said in a statement. Footnote 2
How do I file an extension for my tax deadline to October 15?
If you need extra time beyond the IRS deadline of July 15, you can file an IRS extension.
Taxpayers who may continue to need additional time to file could choose to submit the appropriate extension form by July 15, 2020, to obtain an extension to file their return. The extension date will not go beyond the original statutory or regulatory extension date of October 15, 2020.
Here is information on how to apply for an extension of time to file.
Please be aware that:
- An extension of time to file your return does not grant you any extension time to pay your taxes.
- You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.
- You must file your extension request no later than the regular due date of your return.
READ MORE: 5 Reasons Why Your Best Crypto Tax Firm Choice Is Donnelly Tax Law
How may we help you?
At Donnelly Tax Law, we take care of filing an extension for our clients, just to make sure we always have plenty of time.
Let us help you meet your tax needs. Talk with us today.
Or do-it-yourself with our resources for doing your taxes, from e-books to online courses.
Be sure to join our conversation on Twitter and follow us @CryptoTaxFixer.