IRS extends more tax deadlines to cover individuals, trusts, estates corporations and others
The Department of Treasury and the IRS recently announced that Notice 2020-23 extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes and no late-filing penalty, late-payment penalty or interest will be due.
This notice expands this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers who have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.
Overview of extensions granted to July 15, 2020
| Type of tax return | Form(s) |
|---|---|
| Individual/married tax return & payments | Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS |
| Trust & estate tax return & payment | Form 1041, 1041-N, 1041-QFT |
| Partnership returns | Form 1065; Form 1066 |
| Corporation tax return & payments | Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, 1120-SF |
| United States Estate and Generation-Skipping Transfer Tax Return & payment | Form 706; 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D), 706-GS(D-1) |
| Information Regarding Beneficiaries Acquiring Property from a Decedent | Form 8971 |
| United States Gift and Generation-Skipping Transfer Tax Return and payment | Form 709 |
| Exempt Organization Business Income Tax Return & payment | Form 990-T |
| Excise tax payments on investment income & payment | Form 990-PF; Form 4720 |
| Quarterly Estimated Income Tax Payments & payments | Form 990-W; Form 1040-ES; 1040-ES (NR), 1040-ES (PR); Form 1041-ES; Form 1120-W |
| Return of Organization Exempt from Income Tax | Form 990 |
| Annual Return/Report of Employee Benefit Plan2 | Form 5500 |
Extension of time to file beyond July 15
Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to Oct. 15, 2020, by filing Form 4868 through their tax professional, tax software or using the ‘Free File’ link on IRS.gov. Businesses that need additional time must file Form 7004.
An extension to file is not an extension to pay any taxes owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by the July 15, 2020, deadline to avoid additional interest and penalties.
Estimated tax payments
Besides the April 15 estimated tax payment previously extended, this notice also extends relief to estimated tax payments due June 15, 2020. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.
2016 unclaimed refunds – deadline extended to July 15
For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. The law provides a three-year window of opportunity to claim a refund. If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15, 2020, date.
Annual Filing Season Program application deadline extended
The IRS notice also extended the April 15 deadline to July 15 to participate in the 2020 Annual Filing Season Program (AFSP). If you’re a non-credentialed tax preparer and you met the requirements to participate in the AFSP for 2020, you still have time to sign a Circular 230 consent agreeing to adhere to certain practice requirements for tax practitioners. Once you complete this process, you’ll be in the program, receive your Record of Completion and be listed in the IRS’s Directory of Preparers.