The Internal Revenue Service (IRS) and the Treasury Department, under the authority of the Stafford Act, have announced that the 2019 federal income tax filing deadline is automatically extended to July 15, 2020. This comes after it was announced that 2019 federal income tax payments could be deferred to July 15, 2020 for all taxpayers without penalty or interest payments.

These changes likely have an impact on you, whether you’re an individual filer or a business. We’ve put together some guidance for each filing group so that you’re able to determine your next steps.

INDIVIDUAL FILERS

If you’re an individual filer, the only impact to you is having more time to both file and pay your 2019 federal income taxes (if you owe anything). You do not need to file an extension—the filing and payment deadlines are automatically applied to every taxpayer. Also, there is no limitation on the amount of tax payments individuals can postpone to the new deadline. It’s important to note that these changes do not necessarily apply to 2019 state income tax filing or payment requirements.

Next steps: If you anticipate receiving a federal refund for your 2019 taxes, we recommend filing as soon as you can. The IRS is estimating that tax refunds are currently being issued within 21 days. If you are responsible for filing and paying state income taxes, you should follow the latest guidance from your state. Reach out to us if you have questions about that.

BUSINESSES

This refers to any trust, estate, partnership, association, company, corporation, and anyone who pays self-employment tax. Similar to individual filers, these entities also have the flexibility to file and pay for any 2019 income taxes due by July 15, 2020. Also, there are no limitations on the amount of tax payments businesses can postpone to the new deadline. Any estimated income tax payments for 2020 originally due on April 15, 2020 can also be deferred to July 15, 2020 without any penalty or interest payments.

Next steps: If you’re already working with us on your 2019 taxes, please send us required documentation for tax return preparation as previously planned. Our business has not been disrupted by current events, and we continue to work steadily on all engagements within already established timelines. We can defer any tax payments due to the new deadline of July 15, 2020—but we recommend having us file as soon as possible. We’ll also provide guidance for businesses responsible for state income taxes due prior to the new federal deadline.

We’re staying up-to-date on the latest coming out of the IRS, Treasury Department, and state taxing authorities. If you have any questions about how these changes may affect your tax situation, we can help. Contact us to discuss your circumstances.