All taxpayers—meaning all individuals, trusts, estates, partnerships, associations, companies or corporations – regardless of whether or how much they are affected by COVID-19 – are entitled to the following:
- Federal Income Tax Return: A taxpayer with a Federal income tax return due April 15, 2020, the due date for filing is automatically postponed to July 15, 2020. A taxpayer does not have to file IRS Form 4686 or IRS Form 7004 to get the extension.
- Federal Income Tax Payment: A taxpayer with a Federal income tax payment due April 15, 2020, the due date for filing and paying is automatically postponed to July 15, 2020 – regardless of the size of the payment owed. This includes relief for the following payments –
(a) Federal income tax payments (including payment on self-employment income) for the Taxpayer’s 2019 tax year, and
(b) Federal estimated income tax payments (including payment on self-employment income) for the Taxpayer’s 2020 tax year.
- Federal Estate and Gift Tax/ Other Federal Tax: No extension is provided for the following:
(a) Payment or deposit of any other type of Federal tax – including Federal estate or gift taxes.
(b) The filing of any Federal information return.
- Federal Income Tax – Interest and Penalties: The period from April 15, 2020 to July 15, 2020 is disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the postponed income tax returns or pay the postponed income taxes. Interest, penalties and additions to tax will begin to accrue again on July 16, 2020.
IRS Information Site: Ongoing information on the IRS and tax legislation response to COVID- 19 can be found here.
Frank L. Leffingwell is a tax attorney in the firm’s Tax Planning & Controversy, Estate Planning, Probate & Trusts, and Real Estate sections.