COVID-19 Update: 23rd March – Federal government confirms tax extension
The US treasury secretary, Steven Mnuchin, announced on Friday 20th March an extension to the Federal tax filing deadline.
The announcement confirms that the Federal filing deadline is extended from April 15th until July 15th – giving taxpayers a further 90 days to file Federal returns.
Taxpayers do not need to file any further forms or contact the IRS; the extension is automatic.
Crucially, taxpayers can also defer Federal income tax payments that originally were due on April 15th to July 15th, without any interest or penalties, irrespective of the amount due. Original guidance issued by the Treasury suggested this would be capped at $1m, but this restriction has since been removed entirely.
Refunds are still being processed as usual, with most being processed within 21 days of filing.
Individual taxpayers who need further time to file past July 15th can apply for an extension of time to file through the usual channels; Form 4868 for individuals or Form 7004 for businesses.
As of Sunday 22nd March, a number of individual States appear to be following Federal guidelines, including California.
For up to date State by State information, please visit here.
For more information, please contact us, or visit our website.