IRS Extends 2019 Tax Filing AND Payment Deadline

IRS Extends 2019 Tax Filing AND Payment Deadline

In an effort to alleviate financial pressure from the mass shutdowns related to mitigating the spread of Covid-19, the IRS announced on March 18^th that taxpayers would receive an automatic extension of time to pay any tax liability due on their 2019 individual income tax returns. On March 20^th, the filing deadline was also extended thereby alleviating taxpayer’s obligation to submit an extension by April 15^th. The new filing and payment deadline for individual income tax returns is now July 15, 2020.

During this three-month automatic extension, no late payment penalties or interest will accrue. Late filing penalties will also be waived.

Taxpayers do not need to take any action to receive this extension. It will be granted automatically to all eligible taxpayers. This does not mean that you should delay in compiling your information. Tax professionals will undoubtedly be overwhelmed in the coming months—especially as individuals who are unable to pay existing tax debts seek relief in the form of offers-in-compromise.

Taxpayers who expect a refund should file as soon as practicable. Since penalties only apply if tax is due, timely filing is not as critical for taxpayers receiving refunds. Delays in the payment of refunds could increase as time goes on, so filing timely is always encouraged.

If you cannot timely file your return by the new July 15^th deadline, you may request a filing extension. You must submit Form 4868 https://www.irs.gov/pub/irs-pdf/f4868.pdf via mail or ask your tax preparer to submit the form electronically. You can also access many of the IRS’ free online filing partners to file your return or an extension request online https://www.irs.gov/filing/free-file-everyone-can-file-an-extension-for-free.