In response to the Coronavirus emergency, the IRS delayed federal tax day to July 15, 2020.
Any federal income tax payments that would have been due between April and July, including estimated tax payments for 2020, were deferred until July 15—without penalties and interest.
The July 15 tax filing and payment deadline has passed and the IRS hasn't announced any deferrals on upcoming payment deadlines. If you filed an extension application for your 2019 taxes, you have until October 15, 2020, to file. If you must make estimated payments on 2020 taxes, the quarterly deadlines are the same: September 15 for the third quarter and January 15, 2021, for the fourth quarter.
Suspended Payments Must Be Restarted
Taxpayers who had suspended payments on IRS payment plans need to resume those payments by July 15 to avoid penalties and possible default. This includes payments on installment agreements and offers in compromise. See the IRS Notice for more information on when and how to resume these payments.
Extension Application Deadline Has Passed
Filing gives you an extra six months from the April 15 due date—until Oct. 15. The Oct. 15 date remains the deadline if you request an extension by July 15.
Filing an Extension Application and Paying. The easy way to get an extension is to pay all or part of your tax and indicate that the payment is for an extension. You can use Direct Pay through your bank account or a credit or debit card to make this payment. You don't have to file a separate extension application if you use this payment method.
Filing an Extension Application Without Paying. The type of extension application you file depends on your tax return. Businesses must file Form 7004, and individuals must file Form 4868. Here's how you can file an extension electronically without making a payment for your 2019 taxes:
- Taxpayers filing Form 1040 or 1040-SR have several options for filing an extension. You can use IRS Free File, tax preparation software, or a tax preparation service, or you can file Form 4868 directly.
- Corporations can apply for an extension on Form 7004 by using the IRS Modernized e-File (MeF) platform.
More On Payment Options
The IRS has several tax payment options during the Coronavirus emergency for people who can't pay in full. These include:
Online payment agreements are for individuals who owe $50,000 or less in income tax, penalties, and interest (or businesses that owe $25,000 or less in payroll tax, penalties, and interest) and who have filed all tax returns. To set up a payment agreement see how to apply online.
Installment agreements are for taxpayers who don't qualify for the online payment agree or who chose not to use it. Use IRS Form 9465 Installment Agreement Request to file an application.
Offers in compromise are for taxpayers who qualify to settle their tax bill for less than the amount due. To see if you are eligible, use the Offer in Compromise Pre-Qualifier tool.
How Will This Affect Small Business Owners?
Many small business owners pay their business taxes through their personal tax returns (Form 1040 or 1040-SR). Small businesses included in this tax relief measure are:
- Sole proprietors and single-member LLC owners that file Schedule C,
- Partners in partnerships, LLC members, and
- S-corporation shareholders filing Schedule K-1 for their share of business earnings.
Don't forget to include self-employment tax (Social Security and Medicare tax) on your business earnings in your estimated taxes and overall tax calculation.
What About Payroll Tax Report Deadlines?
Under the CARES Act of 2020, employers may defer deposit and payment of the employer's share of Social Security taxes that would have been payable beginning on March 27, 2020, and ending December 31, 2020. IRS Form 941 (the Employer's Quarterly Tax Report) has been revised to include these deferrals. The employer share of Social Security taxes is 6.2% of Social Security wages for all employees for the quarter. See this article with FAQs about the deferral for more information.
What About My Stimulus Check?
If you haven't filed your 2019 tax return and you didn't receive your stimulus check yet, you will still receive a stimulus check under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In the absence of a 2019 return, the IRS will use your 2018 return to calculate the payment. (You can check the status of your payment here.)
What About My State Tax Payments?
All 50 states with a personal income tax extended the April 15 deadline. Check this American Institute of CPAs database for details on your state's deadlines or with your state tax agency for more information.