US Postpones April 15 Tax Deadline By 90 Days

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Winston

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US Postpones April 15 Tax Deadline By 90 Days
17 Mar 2020

https://www.zerohedge.com/markets/us-postpones-april-15-tax-deadline-90-days

In news that will delight millions of Americans - at least those who end up owing Uncle Sam a tax bill instead of getting a refund - the US government will postpone the April 15 tax-payment deadline for tens of millions of taxpayers by 90 days, giving Americans roughly 3 months pay their 2019 income-tax bills in an unprecedented move.

The IRS, under the authority of President Trump’s national-emergency declaration, will waive interest and penalties as well, Treasury Secretary Steven Mnuchin said at the White House Tuesday. The delay will be available to people who owe $1 million or less and corporations that owe $10 million or less.

The extension was granted to give taxpayers a financial cushion as households and businesses cope with the sudden crash in economic activity caused by the coronavirus outbreak which has brought the US economy to a halt. The move could provide households with hundreds of billions of dollars in temporary liquidity, Mnuchin said last week in previewing the government’s actions.

Meanwhile, those who are owed money from Uncle Sam will get it as the IRS will continue to process tax refunds, and Mnuchin urged people who can file their tax returns to do so. Many taxpayers who expect refunds file soon after the IRS opens filing in late January. That is particularly true for low-income households that benefit from the earned-income tax credit, which gives them cash.
 
My fed tax bill won't be bad, but my state bill is at least twice the fed. I hope the state extends the deadline.
 
Have they moved the filing deadline or just the payment deadline? How are you supposed to visit a tax pro while this is going on? My mother in law does this for a living, and she is in her 60's, I really don't want her to be in a situation having to meet with dozens of people a day.
 
Just the payment deadline.
Which is going to create an unbelievable amount of confusion and a few interesting questions. For example, if I file for an *extension* by April 15 (which ordinarily means you must pay some amount by April 15), will the requirement for that payment be extended also? If so, it would amount to almost the same thing as deferring filing.

Best -- Terry, Loophole Finder Extraordinaire :D
 
Which is going to create an unbelievable amount of confusion and a few interesting questions. For example, if I file for an *extension* by April 15 (which ordinarily means you must pay some amount by April 15), will the requirement for that payment be extended also? If so, it would amount to almost the same thing as deferring filing.

Best -- Terry, Loophole Finder Extraordinaire :D
The extension of time to file doesn’t relieve you of the burden to pay what you owe by the payment deadline. So in a normal non-pandemic year, if you file the extension you’re expected to pay on April 15 all of what you owe. You can square up when you finally file the return, but any underpayment in April will be hit with late payment penalties and interest.

This year, the money is not due until July. So you shouldn't have to pay anything with the extension.

EDIT: and also, you’re not required to pay anything when you file an extension. In a normal year, that would be really dumb unless you didn’t owe any money.
 
Oh?

https://home.treasury.gov/news/press-releases/sm948, linked from here: https://www.irs.gov/coronavirus which in turn is a link from about halfway down the main irs.gov page which looks like this:

View attachment 409617
You mean the one that starts:

March 18, 2020

The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can't file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return.
 
Great, after I did mine last Sunday, and have the auto draft set for tomorrow .
Oh well, glad they are done and paid.
 
Do quarterly federal estimated tax payments for 2020 still need to be paid on time? The first quarterly estimated payment is due April 15 and I don't see anything in the IRS statement that says whether or not this payment can also be delayed.
 
Do quarterly federal estimated tax payments for 2020 still need to be paid on time? The first quarterly estimated payment is due April 15 and I don't see anything in the IRS statement that says whether or not this payment can also be delayed.

Also postponed. It’s not in the press release, but in the actual notice:

The relief provided in this section III is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, in respect of an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an Affected Taxpayer’s 2020 taxable year. The Applicable Postponed Payment Amounts described in this section III include, in the aggregate, all payments described in the preceding sentence due on April 15, 2020 for such Affected Taxpayers.

So quarterly estimated payments due on April 15 get the same treatment, i.e. postponed until July 15. Note that it’s only for the estimated payment due on April 15. All the other quarterly estimated payments are still due on their usual deadlines.
 
Whats the deal with estimated tax payments anyway? Lessen the pain over time?
If you have income from sources for which no tax is withheld, typically investment income, then you may need to make quarterly estimated tax payments. If you wait and pay all the tax with your return then you may owe a penalty. Because Uncle Sam wants his money up front.
 
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