Extended Income Tax Filing Deadlines

The COVID-19 pandemic has triggered a tidal wave of event cancellations, activity restrictions and many extended deadlines.  This includes an extension of certain April 15 income tax filing and payment deadlines.  Following is a brief summary:

Federal

The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020 are automatically extended until July 15, 2020.

This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.

This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.  (However, even though first quarter 2020 estimated income tax payments are postponed from April 15 to July 15, second quarter 2020 estimated income tax payments are still due on June 15, 2020.)[1]

Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on the taxes paid by July 15.

Individual taxpayers and businesses who need additional time to file beyond the July 15 deadline can request a filing extension.

Wisconsin

Like the IRS, the State of Wisconsin announced that April 15 Wisconsin income tax payment and return due dates are automatically extended to July 15, 2020. Wisconsin law will automatically extend time and waive interest and penalties for taxpayers due to the presidentially declared disaster.

Tax filers do not have to file any extension forms to be eligible for this new due date.

There is no limit on the amount of payment to be postponed, and there are no income exclusions.

This relief applies to individuals, trusts, estates, partnerships, associations, companies or corporations.

This relief is solely for income tax payments, estimated income tax payments and returns due April 15, 2020.

There will be no interest or penalty for the period of April 15, 2020 to July 15, 2020.

Interest, penalties, and underpayment interest for failure to make quarterly estimated tax payments with respect to such postponed federal income tax filings and payments will begin to accrue on July 16, 2020.

Other States

Some states have not yet announced whether they are extending state tax filings and payments. 

Taxpayers that are required to file income tax returns in states other than Wisconsin should confirm with their tax preparer whether or not they are still required to file and/or pay state taxes on April 15, 2020. 

Conclusion

Even if your income tax filing deadline has been extended, it may still be a good idea to file your income tax returns by April 15, or as soon as practical.  For example, if you are expecting a refund, the sooner you file the sooner you will receive your refund.  Or, if you owe tax, you can file your tax returns as soon as they are complete and then wait until closer to July 15 to make your extended tax payments.

Please let us know if you have any questions about your income tax filing and payment deadlines. 

[1] https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers