Federal and State Tax Return Filing and Payment Dates Postponed

COVID-19 Update

Last Updated: April 14, 2020

Federal Income Tax Returns

The Internal Revenue Service (IRS) has extended the tax return filing due date for 2019 federal income tax returns from April 15, 2020, to July 15, 2020, and taxpayers also may defer federal income tax payments that would have been due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This relief now has been expanded to cover all other tax returns, tax payments, and other actions for which taxpayers have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. The extra time is provided to all taxpayers, including individuals, trusts, estates, corporations, partnerships and other noncorporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any forms to qualify because this federal tax filing and payment relief is automatic. However, the IRS has advised taxpayers who are due refunds to file as soon as possible, with most tax refunds being issued within 21 days.

Federal Extension of Time to File Beyond July 15

Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to October 15, 2020, by filing Form 4868 on or before July 15, 2020. Businesses needing additional time may request an extension by filing Form 7004. In either case, the additional extension to file does not extend the time for paying any taxes owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by July 15, 2020, to avoid interest and penalties.

Federal Estimated Tax Payments

The additional time to pay applies to estimated tax payments for individuals due on April 15, 2020, and June 15, 2020, and to any quarterly estimated tax payment for corporations due on or after April 1, 2020, and before July 15, 2020. All such estimated payments may now be made anytime on or before July 15, 2020, without penalty.

Federal Estate and Generation-Skipping Transfer Taxes

Estate and generation-skipping transfer tax payments and tax return filings on Forms 706 (and gift and generation-skipping transfer tax returns that are due on the estate tax return filing date) due on or after April 1, 2020, and before July 15, 2020, may now be made anytime on or before July 15, 2020, without penalty.

2016 Unclaimed Refunds and Tax Court Filings

For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. Taxpayers normally have a three-year window from the tax return due date to claim a refund, and if they do not file a such a claim within three years, the money belongs to the U.S. Treasury. Any claim for refund or Tax Court petition or other filing due on or after April 1, 2020, and before July 15, 2020, may now be made anytime on or before July 15, 2020.

Time-Sensitive IRS Actions

The IRS also has been given additional time to take certain actions in connection with taxpayer audits and appeals. In general, the IRS has an additional 30 days to meet its deadlines for such actions where the last date for the performance before the deadline otherwise would expire occurs during the period beginning on or after April 6, 2020, and ending before July 15, 2020.

State Tax Return Filing and Payment Dates Postponed

All states with personal income taxes have extended their April 15, 2020, due date for income tax returns and payments. Thirty-nine states—AK, AL, AR, AZ, CA, CO, CT (June 15 for businesses), DE, GA, IL, IN, KS, KY, LA, MA, ME, MD, MI (July 31 for corporations), MN (does not apply to businesses), MO, MT, NC, ND, NE, NJ, NM, NY, OH, OK, OR, PA (from May 15 to August 14 for corporations), RI, SC, TN, TX, UT, VT, WI and WV—as well as the District of Columbia and the U.S. Virgin Islands have adopted the federal due date of July 15, 2020, except as noted. Five states and one territory have changed their individual income tax filing and payment deadlines to other dates: HI (July 20), IA (July 31), ID (June 15), MS (May 15), VA (filings May 1, payments June 1) and Puerto Rico (June 15). Washington (annual business and occupation tax) and New Hampshire (business tax, interest and dividends tax), which do not have general personal income taxes, have changed their deadlines for these other taxes to June 15.

Most, but not all, states have extended payment due dates for some estimated tax payments. Additionally, many states also have adopted some form of COVID-19 taxpayer relief for taxes other than income taxes, including sales and use taxes, payroll taxes and real property taxes.

How Manatt Can Help: Manatt’s tax practice is keeping abreast of the various tax relief measures being implemented at the federal and state levels to ease tax filing and payment burdens on businesses and individual taxpayers affected by the COVID-19 pandemic. We are here to help clients navigate these new and changing requirements and to take full advantage of the tax deferral benefits being made available.

For More Information: Contact David Herbst, partner, Manatt Tax, at dherbst@manatt.com or 650.812.1320, or Jeffrey A. Mannisto, partner and leader, Manatt Tax, at jmannisto@manatt.com or 310.312.4212.

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