COVID-19 Impacts U.S. Tax Return Filing & Payment of Tax Due Dates
AS OF APRIL 7, 2020
INDIVIDUAL TAXPAYERS RESIDING WITHIN THE U.S.
As part of the U.S. federal government’s COVID-19 pandemic containment response, the U.S. Treasury Department and Internal Revenue Service recently announced that the Federal April 15, 2020 filing due date for individual income tax returns has been automatically extended to July 15, 2020.
No extension form is required to be filed and a taxpayer doesn’t have to be impacted by COVID-19 to qualify.
Taxpayers may also defer Federal income tax payments that are normally due on April 15, 2020 to July 15, 2020 without interest and penalties, regardless of the amount owed.
INDIVIDUAL TAXPAYERS RESIDING OUTSIDE OF THE U.S.
For U.S. citizens & resident aliens who have their tax home and abode outside the U.S. and Puerto Rico on April 15, the normal Federal tax return filing due date is also April 15 each year, even though they may qualify for the automatic 2-month extension to June 15. Because the normal tax return filing due date is April 15, 2020, the special COVID-19 automatic extension to July 15, 2020 also applies to this group of taxpayers.
Such taxpayers may also defer Federal income tax payments that are normally due on April 15, 2020 to July 15, 2020 without interest and penalties, regardless of the amount owed.
MOST U.S. STATES PROVIDE SIMILAR RELIEF
While the Federal automatic extensions are a welcomed relief for taxpayers whose lives have been severely disrupted by the COVID-19 virus, they do not apply to U.S. State income tax filings or payments of tax owed.
Instead, each U.S. State has been left to decide whether or not to modify its tax return filing and payment due dates. As of today, most states have modified their income tax return filing and payment due dates. You should check with your tax professional or visit your state’s website for the most current information.
FREQUENTLY ASKED QUESTIONS (FAQs)
The IRS has established a special page for frequently asked questions related to income tax filing and payment due dates. You may access it by clicking the link below.
CONSULT YOUR TAX PROFESSIONAL
The content of this article is strictly informational. It is not intended to be used and should not be used as tax advice. You should consult with your tax advisor for the most up-to-date information applicable to your situation.
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