The U.S. Treasury and Internal Revenue Service has announced that they are going to provide individual and corporate taxpayers relief by extending the requirement to file your 2019 income tax return and pay certain income taxes normally due by April 15, 2020.
Taxpayers May File for an Extension
Taxpayers have the ability to file for a six-month extension, until October 15, 2020, to file their income tax returns. Normally an extension does not grant an extension of time to PAY your income taxes beyond April 15. If taxes are owed, but unpaid by April 15, 2020, penalties and interest would apply. The payment extension would allow taxpayers to pay their tax liability within 90 days of April 15, 2020, without incurring late interest and penalties.
The extension applies to individuals and corporations with tax payments due April 15. These payments include:
- Individual taxes up to $1 million
- Corporate taxes up to $10 million
- Estimated tax payments for the year 2020
As a reminder, this is a federal deferral provision. Maryland has also approved a similar delay in 2019 taxes, normally due April 15, 2020. Not all states have adopted this deferral, so be sure to ask us about your particular state policy. We will update you as the Treasury provides additional guidance on this matter.
We encourage our clients to continue to work towards providing us the necessary information to prepare your 2019 tax returns or extension timely and accurately, well before the April 15, 2020 deadline.
Reminders for Tax Filing Changes
Taxpayers wishing to extend their 2019 income tax return filing deadline until as late as October 15, 2020, should still plan on filing a federal and state extension request by April 15, 2020. Additionally, year 2019 contributions to Health Savings Accounts (HSA), Individual Retirement Accounts (IRA) and ROTH IRA, normally due no later than April 15, 2020, should still be funded by April 15, 2020. If you have additional questions or concerns, please contact Fitzpatrick, Leary & Szarko for more information.