The Internal Revenue Service announced that it is changing the filing deadline for income tax returns due to the pandemic.
The IRS had previously announced all taxpayers could file for an extension but they had to file returns by April 15. Today, Treasury Secretary Steven Mnuchin said tax day would be moved to July 15, at the direction of President Trump.
For individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.
This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.
The Massachusetts Society of CPAS was critical of the IRS’s previous policy, but applauded today’s decision.
“On behalf of our 11,000 members, the MSCPA is grateful the U.S. Treasury Secretary Stephen Mnuchin made the right decision to extend the tax filing deadline to July 15, 2020,” said Amy Pitter, president and CEO of the Massachusetts Society of CPAs. “This provides much needed relief to both taxpayers and practitioners across the country who are facing an unprecedented set of challenges brought on by the COVID-19 pandemic.
“We firmly believe that Massachusetts should follow suit and offer similar guidance that extends the deadline. Having clear, consistent and equivalent language from state and federal governments will limit confusion and ease the stress of taxpayers and practitioners alike.”
Pitter added that the state must also consider those who rely on tax assistance programs that are now closed due to the COVID-19 pandemic. “By not extending the filing deadline, the state leaves these taxpayers to complete their returns without the appropriate resources to do so. The absence or delay of clear guidance, or the adoption of state-specific relief that differs from the federal guidance will only worsen these concerns.”
More info at irs.gov
Our latest Edition! Open in New Window