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The Internal Revenue Service has clarified and issued further guidance for us on the extended due dates for tax returns and payments because of the current pandemic. This includes information on steps to be taken and whether Individual Retirement Arrangement (IRA) or Health Savings Account (HSA) contributions need to be made by April 15.

Q. I am a fiscal year filer. My Federal income tax return for fiscal year 2019 is due on April 15, 2020. Am I an "Affected Taxpayer" eligible for relief under the Notice (2020-18)?

A. Yes, the relief provided in the Notice applies to Federal income tax returns and payments in respect of an Affected Taxpayer’s 2019 taxable year, and postpones those 2019 return filings and payments due on April 15, 2020 until July 15, 2020.  If your Federal income tax return for your fiscal year ending during 2019 is due on April 15, 2020, whether that is the original due date or the due date on extension, your due date is postponed to July 15, 2020.  

Q. Does the relief provided in the Notice (2020-18) apply to payroll or excise taxes?

A. No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes.

Q. What if i am unable to file my 2019 income tax return that would have been due on April 15 by July 15, 2020?

A. If you are an individual, you can request an automatic extension to file your Federal income tax return if you can't file by the July 15 deadline by filing Form 4868. If you are a business you can request the extension by filing Form 7004. The request must be made by July 15, 2020 and your return will be due by October 15, 2020. To avoid interest and penalties when filing your tax return after July 15, 2020, pay the tax you estimate as due with your extension request.

Q. I already filed my 2019 income tax return that would have been due on April 15 and I owe taxes, but I haven't paid yet. What do I need to do to avoid interest and penalties?

A. To avoid interest and penalties, pay your taxes in full by July 15, 2020. If you filed Form 1040 or Form 1040-SR, the tax payment amount can be found on line 23. For a corporation filing a Form 1120, the tax payment amount can be found on line 35. Interest and penalties will begin to be charged after July 15 for any amount remaining unpaid by that date.

Q. I already file my 2019 income tax return and scheduled a payment for taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?

A. No, the payment will not be automatically rescheduled to July 15. If you do nothing, the payment will be made on the date you chose. Here is information on how to cancel and reschedule your payment:

  • If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the Look Up a Payment feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number.
     
  • If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on Payments from the EFTPS home page, login, then click Cancel a Tax Payment from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
     
  • If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
     
  • If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment.

Q. The Notice postpones the deadline for first quarter 2020 estimated income tax payments due April 15, 2020. What about second quarter estimated tax payments due on June 15? Have they been postponed as well?

A. No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020.

Q. Does this relief provide me more time to contribute money to my IRA for 2019?

A. Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.

Q. Does this relief provide me more time to contribute money to my HSA or Archer MSA for 2019?

A. Yes. Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020. 

Q. I want to file a claim for a refund for 2016, which must be filed by April 15, 2020 to be timely. Does this relief give me more time to claim my 2016 refund?

A. No, the relief provided for filing Federal income tax returns applies only to Federal income tax returns for the 2019 taxable year. The Notice does not extend relief to any filings or payments for taxable year 2016.

 

 

Thursday, 2nd April 2020
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