The U.S. tax filing and payment deadline has been extended to July 15 from April 15 due to COVID-19. U.S. Treasury Secretary Steven Mnuchin stated “All taxpayers and businesses will have this additional time to file and make payments without interests or penalties.” The new deadlines announced by the administration apply to federal income tax filing and payments only. States continue to release their own deadline extensions in the wake of these postponements.
In addition, the IRS also lifted the $1 million individual cap, therefore no matter how much is owed, it isn’t due until the July 15, 2020, deadline. There is also a grace period for filers who pay quarterly estimated taxes – these filers can delay the April 15 payment until July 15. The delay doesn’t apply to second-quarter estimated taxes, which are due June 15, 2020.
The deadline of July 15, 2020, also applies to Traditional IRA and ROTH contributions for 2019.
Taxpayers are still encouraged to file as early as possible to receive their refunds. States continue to release their own deadline extensions in the wake of these postponements.
Honkamp Krueger continues to monitor this and other legislation in the wake of COVID-19. For questions or concerns, contact your account manager.