Following our last post, Secretary Mnuchin announced the filing deadline has been postponed for the 2019 tax year. Taxpayers can now officially defer federal income tax filing and payments to July 15, as well as estimated income tax payments mentioned in our previous post. Additionally, there will be no need for taxpayers to file Form 4868 or 7004 as would normally be the case for a valid extension. With notice 2020-18 superseding Notice 2020-17, there is no longer a dollar limitation on tax owned; the $1 million (and $10 million for corporations) dollar threshold of tax owed has been removed.
Taxpayers also have until July 15 to contribute to Individual Retirement Contributions and Health Savings Accounts.
For your questions on filing and payment deadlines, the IRS has provided some answers.
Many states are now beginning to follow the trend and have extended their time for filing deadlines:
- Connecticut has extended the time for filing and paying personal income tax returns to July 15, 2020.
- New York has issued guidance for relief from penalties and interest for sales and use tax with a March 20, 2020 due date. While not officially announced yet by the Department of Tax and Finance, New York State also appears to have moved the state deadline to July 15.
- Massachusetts is aware that the IRS has issued guidance with respect to tax returns and payments due April 15 and is working on a plan to provide relief with respect to Massachusetts returns and payments.
- Rhode Island’s deadline for income tax filings has also been postponed to July 15.
- New Hampshire, at this time, appears not to have extended any deadlines.
As federal and state updates continue to trickle in, keep checking in for updates. Despite the tax filing and payment delays, continue to work with your tax preparers to determine the best path forward. In my neck of the woods, many NY farmers have received state tax refunds that are relied upon. It may make sense to still file as soon as you can to get your state tax refund while delaying payment of any federal tax owed. Contact your local branch office to discuss the options for your tax preparation.