For most US taxpayers, that means that the Tax payment deadline, the deadline to pay, is now July 15, 2020 (previously April 15, 2020). The deadline to file remains unchanged. The deadline to file remains June 15, 2020 for Americans overseas.
In response to the COVID19 pandemic, the Internal Revenue Service has now extended the date for payment of due taxes by 90 days. This extension is applicable to taxes up to $1 million in the case of individuals and up to $10million in the case of companies/corporations. This deadline extension is an attempt to free up household money and to give financial relief to US citizens in this uncertain condition.
The COVID19 coronavirus is continuing to spread across the United States and more than 7000 confirmed cases have been reported with more than 110 deaths across the country. The officials are doing anything in their power to keep a large group of people from congregating in small spaces. Now in such a situation, the announcement of this extension is a kind of relief for the people especially in the situation when there is limited social activity going on. We all know that financial insecurity is being pervasive in this country, even before this Corona crisis, so it is vital to help tens of millions of American families keep their heads above water during this time.
With this payment extension, the federal government is pushing back approximately $300 billion of tax revenue and during that 3 months’ period, the taxpayers shall not be subjected to any penalties or interest.
So far, the extension announcement relates to Federal taxes, however, it is also reported that three other states, Connecticut, California and Maryland are also planning to defer their income tax payments too.
Just keep in mind that this extension relates to the payment of due taxes only. The date for filing your tax returns is still the same. The deadline to file is April 15 for those present in the US as of that date, and June 15 for those overseas as of April 15. It can be extended to October 15 by requesting and extension, please contact us and we’ll e-file one for free.
The good news is that tax filers also have a way to extend their individual tax filings, even if on the federal level there is no emergency call to push the deadline. They simply can file an automatic filing extension even without giving any reason for it. All they have to do is to file a request by April 15th either online through their tax software or by filing a Form 4868 with the IRS in a timely manner.
The US government is doing its part to combat the COVID19 outbreak. It is also our duty to stay safe and be responsible citizens.