To help you in your tax planning, we’ve outlined additional information related to the recently announced federal filing extension to July 15, 2020.
IRS
In response to the federal tax relief announced, the IRS has issued additional information addressing several frequently asked questions. The entire list of questions and responses can be found at: www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers.
Below is a summary of several of the questions most pertinent to our customers:
- FAQ #3 and #4 - If an income tax return was due on April 15, 2020 (including any extended income tax returns), there is an automatic extension to July 15, 2020.
- FAQ #5 - For anything with a due date after April 15, 2020, there is no automatic extension. At this time, those items are still due on their originally scheduled date.
- FAQ #6 - Payroll and excise tax returns do not have an extension.
- FAQ #7 - Estate and gift tax returns and payments are still due on April 15, 2020. If you need to file either type of return, contact your tax accountant to file an extension.
- FAQ #12 - If you still need additional time beyond July 15 to file, we can help you file an extension before then.
- FAQ #13 - Even if your return has been filed, you only need to pay the tax due by July 15, 2020 to avoid interest and penalties.
- FAQ #14 - If you scheduled a payment electronically with the IRS for payment on April 15, you can change the payment date. This can apply to both taxes due or an estimated tax payment.
- FAQ #16 - The first quarter estimate normally due April 15 has been extended to July 15, however the second quarter estimate due on June 15 is still due on June 15. This is subject to change over the next few months; watch for updates.
- FAQ #17, 20, 21 - The IRA, retirement plan contributions, HSA, and Archer MSA due dates are extended to July 15 for this year.
- FAQ #22 - The statute of limitations for calendar year 2016 returns has not been extended. To request a refund, this must be filed by April 15, 2020.
- FAQ #24 - Underpayment of estimated tax penalty will continue to accrue past April 15. There is no grace period between April 15 and July 15, 2020.
State Tax Extensions
Both Michigan and Wisconsin have extended their tax due dates to be aligned with the federal government timeline of July 15, 2020.
IRS Stimulus Package
On March 27, President Trump signed into law the largest economic stimulus package in modern American history, a $2 trillion measure designed to respond to the coronavirus pandemic. Under the law, there will be direct government payments and jobless benefits for individuals, along with money for states and a fund for businesses impacted by the crisis. Updates will be provided as the full details of the package become available. Additionally, the IRS also has a resource page related to the stimulus package and other COVID-19 topics: www.irs.gov/coronavirus.
