The IRS is trying to reach everyone to make clear that the postponement of several tax deadlines until Wednesday, July 15, 2020, is it. There have been some stories in the press suggesting the IRS was going to postpone that date. However, there are no more postponements. The July 15 deadline generally applies to all taxpayers with a filing or payment deadline between April 1 and July 15, 2020.
The relief the IRS granted earlier this year includes individual and corporate quarterly estimated tax payments. Any taxpayer making payments received by the IRS by July 15, 2020 will not be charged late-filing, late-payment or interest fees.
NOTE: To protect yourself, if you mail in your payment, you should send the payment by certified mail, return receipt requested. IRS centers are swamped. Not all employees have returned and the IRS is short-staffed. As a result, a check mailed today might not be processed for several weeks. If you don’t have proof of mailing to establish that you mailed your payment on or before July 15, you may be facing those late-filing, late-payment and/or interest fees. You need to protect yourself. Get and keep evidence of your payment having been sent. Personally, I make a copy of the check, the form that accompanies the check (for example, the 1040-ES) and attach to those copies, the receipt from the post office for the mailing (Yes, I actually hand-deliver the envelope sending the payment to the post office and get a receipt) and, when delivered, I get and keep the delivery receipt.
Some taxpayers have to pay estimates of their income taxes on a quarterly basis during the year. Normally, those taxpayers would have had to have made estimated payments by April 15 for the first quarter of 2020, and another by June 15 for the second quarter of 2020. The IRS says those two payments can be combined into one payment. Two payments are not necessary. That said, nothing prohibits the sending in of two payments for 2020 estimated taxes.
However, the IRS says that taxpayers who still owe 2019 income tax, as well as estimated tax for 2020, must make the 2019 and the 2020 payments separately. That is to say, the payment for the 2019 income tax owed must not be combined with the 2020 estimated tax payments. The net result is that a taxpayer could be making up to three (3) payments by July 15: one for the 2019 taxes, and either one or two payments for the 2020 estimated taxes.
NOTE: the IRS offers several convenient ways to make electronic tax payments. You can check those out at https://www.irs.gov/payments.
Taxpayers needing more time to file their tax returns should request an extension by July 15, 2020. A taxpayer’s request for an extension to file gives the taxpayer until October 15, 2020. Exceptions may apply for military personnel serving overseas.
For more info, here are some helpful IRS website links:
Coronavirus Tax Relief, Filing and Payment Deadlines
IRS extends more tax deadlines
Extension of Time to File Your Tax Return
This information is provided as a means of keeping subscribers informed on important current events affecting planning. It is not intended to be legal or tax advice applicable to any particular person’s issues, and readers should consult with their own tax accountant or attorney before taking, or refraining from taking, any action.