In response to the COVID-19 pandemic, the IRS recently announced that the tax deadline to file 2019 returns has been moved from April 15th, 2020 to July 15th, 2020. This change was publicized after President Donald Trump’s emergency declaration according to the Stafford Act, a federal law that establishes orderly and systematic government response to a national disaster or other widespread hardship, which was given on March 13th.
According to the IRS website, the tax deadline shift is designed to alleviate the financial hardships brought on by quarantine requirements, business closures, childcare challenges, and COVID-19-related illness in line with the Act’s goals to establish Federal government relief in national emergency and disaster situations.
The deadline extension is automatic, meaning that taxpayers need not file any additional paperwork to qualify, and is applicable regardless of the amount owed. All taxpayers, including individuals, corporate and non-corporate filers, trusts, estates, and self-employed entrepreneurs will all receive this extra time to file.
In addition, this measure also extends the deadline to pay any taxes owed without incurring any interest or penalties from the IRS. Individual taxpayers who need longer than the extension date of July 15th can file Form 4868 to request additional time through their tax expert, online tax software, or the IRS File Free program. Similarly, if your business needs more time to file, you can submit Form 7004.
Since most tax refunds are being issued within 21 days of a return being accepted, the IRS is still urging Americans to file their taxes as early as they are able. While the IRS is reducing some of its operations in response to the pandemic, its essential functions, including receiving returns and paying refunds, will still be in operation. If you are expecting a refund, this money may help ease any COVID-19 financial burdens you may be experiencing. Filing electronically provides the quickest refund turnaround time. For more information on how the IRS is responding to Coronavirus and the relief efforts it plans to undertake, please read our article on COVID-19 leave reimbursements and tax credits and visit the IRS website’s Coronavirus page.
