Attention Taxpayers:
In response to recent world events, the IRS has extended the deadline to file and pay your taxes from April 15 to July 15.
If you’re like many people who scramble to get all your tax information together by the April 15 deadline, this is excellent news. The extension will especially help anyone who OWES taxes to have a little more time to get that money together.
Of course, if you are due a refund, there’s no need to wait until July 15. The sooner you file, the sooner you’ll see your refund check.
Details About the Extension
- You don’t have to file for an extension in order to take advantage of it. Affected taxpayers do not have to submit for an extension to receive this extended deadline.
- Interest and penalties won’t start until July 15. From the IRS: “As a result of the postponement of the due date for filing Federal income tax returns and making Federal income tax payments from April 15, 2020, to July 15, 2020, the period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the Federal income tax returns or to pay the Federal income taxes postponed by this notice. Interest, penalties, and additions to tax with respect to such postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.”
- For Individuals, you can defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest.
- For Corporations, you can defer up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.
Federal vs. State and and Local Taxes
While this July 15 deadline applies to your federal taxes, the rules may vary from state to state. Be sure to check on your state requirements, as you may have to file for an extension in order to utilize the extension. In addition, local governments may or may not extend the deadlines for paying property, sales and use taxes in your community.
Massachusetts State Tax Filing Deadlines for 2020
If you’re in Massachusetts, the date to file and pay state income tax returns has been moved to July 15. This payment extension is granted automatically (no need to file for an extension) to all individuals and businesses who pay income tax in Colorado. It applies to any qualifying income tax payment, regardless of the amount.
Source: https://sharmancpa.com/articles/tax-deadline-extended-to-july-15-2020/
