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PrimeGlobal member firm Katz, Sapper & Miller look at the tax deadline extension due to COVID-19 and explore what this means for you.
On March 20, the IRS extended the federal income tax filing deadline to July 15, in order to provide tax relief to those affected by the COVID-19 pandemic. This means that individuals, trusts, estates, corporations, and other non-corporate tax filers, including those who pay self-employment tax, will now have until July 15 to both file their tax returns and make tax payments.
The July 15 extension is automatic and does not require filing additional forms. It applies to both 2019 federal income tax returns and payments due and to 2020 federal estimated tax payments originally due on April 15.
In a previous notice, the IRS had limited the amount of payment that could be delayed, but IRS Notice 2020-18 states that there is no limit on the amount of the payment that may be postponed. Additionally, no penalties or interest will accrue until after the July 15 deadline. It is important to note that no extension is provided in this notice for the payment or deposit of any other type of federal tax or for the filing of any federal information return. This relief is available solely with respect to federal income tax filings and payments, including payments of tax on self-employment income.
What This Means for You
We understand that each taxpayer’s situation is unique, and in order to help you during these difficult days, our recommendation is to continue working toward the tax deadline as if it was still April 15. This will enable us to more quickly evaluate your tax position in order to determine what is most beneficial for you. For those who will receive a refund, we can file your return so you receive the payment as soon as possible. For those who will owe tax, you can proactively determine the amount and then plan to delay the payment until closer to the deadline.
Katz, Sapper & Miller
At Katz, Sapper & Miller, numbers only tell part of the story. While we offer the technical expertise and knowledge of a leading tax, accounting and consulting practice, we have built our business by looking after our clients’ best interests. Headquartered in Indianapolis, Indiana with offices in Fort Wayne, Indiana and New York, the firm’s 250-plus employees serve a wide range of sophisticated clients in a variety of specialized industries, including start-up companies and not-for-profit organizations to middle-market companies and multi-million dollar corporations. As the many businesses that have grown with us through the years can attest, it is our approach to service and our belief in the entrepreneurial spirit that make our clients feel as if they are our only client.Learn more