In our last U.S. Tax Tip we advised that the United States Treasury Secretary Steven Mnuchin had announced that the United States would defer the 2019 tax payment date, April 15th, 2020, by 90 days to July 15th, 2020. On March 18th, 2020 the IRS issued IRS Notice 2020-17 providing guidance on the deferral. The IRS will not charge any late payment penalties nor interest on payments which were originally due on April 15th, 2020. Consolidated groups could defer up to US $10,000,000 of tax payments while all other taxpayers, including individuals, could defer up to US $1,000,000 of tax payments.
At the time of this announcement, the Treasury’s position was that the original FILING due date of April 15th was still in place and that taxpayers would need to file Form 4868, “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return” to receive an extension of their due date, to October 15th, 2020.
Today, however, Secretary Mnuchin announced that the filing deadline of April 15th, 2020 has also been extended to July 15th, 2020. Mnuchin said “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
While taxpayers now have additional time to file, those taxpayers who anticipate receiving a refund may still wish to file as soon as possible. In addition, those taxpayers who are waiting for various tax forms, such as a Schedule K-1, may still wish to file an extension. These extensions are automatic and cannot be denied by the Internal Revenue Service.
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