Throughout the Coronavirus challenge, Pinnacle Advisory Group wants to keep you in the loop concerning important financial developments that may impact you. As a result, below is the summary of an announcement concerning 2019 income taxes to be filed in 2020.
On March 21, 2020, the federal government announced the following concerning 2019 income taxes that would normally have to be filed by April 15, 2019:
The income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
- Federal income tax payments due on April 15, 2020 can be deferred to July 15, 2020, without penalties and interest, regardless of the amount owed. Note this is unlike the six-month extension obtained by filing a Form 4868. That form extends the deadline but not the tax payment.
- This deferment applies to all taxpayers, including individuals, trusts, estates, and corporations.
- This federal tax filing and payment deferral is automatic. Individual taxpayers who need additional time to file beyond the July 15 deadline can still request a filing extension by filing Form 4868; however, taxes still must be paid by July 15, 2020 to avoid penalties or interest.
- The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
- Maryland and Virginia have also made the same automatic extensions to July 15, 2020.
- DC has not extended their deadline as of March 23, 2020.
Hopefully those of you who are projected to owe taxes can be positively impacted by this announcement. Those projected to receive a refund should file as soon as possible. Note that each state and the District sets its own deadline. Please check with your State Comptroller’s Office to clarify if your state return will also be automatically extended and payments deferred. It would not be surprising for the District to follow the pattern set by Maryland and Virginia; however, this has not yet occurred.