IRS Tax Deadline Extension – FAQs

The news last week of an extended IRS filing and payment deadline from April 15^th to July 15^th was welcome news for many struggling to cope with COVID-19. The extension granted businesses and individuals with additional time to review their tax situation and determine how they will make required income tax payments. Since the issuance of IRS Notice 2020-18, taxpayers have been asking various questions about how the extension applies to their situation. To help provide additional clarity the IRS has published a list of frequently asked questions to relieve concerns. Below we have provided a summary of the most important questions along with their answers.

Tax Deadline Extension FAQs

1. Who is eligible for relief under the Notice? Any person with a Federal income tax return or payment due on April 15, 2020, is eligible for relief under the Notice. “Person” includes any type of taxpayer, such as an individual, a trust, an estate, a corporation, or any type of unincorporated business entity. The payment due refers to both 2019 Federal income tax payments (including payments of tax on self-employment income) and 2020 estimated Federal income tax payments (including payments of tax on self-employment income), regardless of the amount owed. The return or payment must be due on April 15, 2020 – this relief does not apply to Federal income tax returns and payments due on any other date.
2. Do I actually have to be sick, quarantined, or have any other impact from COVID-19 to qualify for payment relief?  No, you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief. You only need to have a Federal income tax return or payment due on April 15, 2020, as described above.
3. What about businesses that filings due on May 15^th, June 15^th or some other date besides April 15^th. Have their filing and payment deadlines been postponed? No, any taxpayers who have filing or payment due dates other than April 15 have not been granted relief at this time.
4. The Notice postpones the deadline for first-quarter 2020 estimated income tax payments due on April 15, 2020. What about second-quarter estimated tax payments due on June 15^th? Have they been postponed as well? No, second-quarter 2020 estimated income tax payments are still due on June 15, 2020. First-quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020.
5. Does the relief provided in the Notice apply to payroll or excise taxes? No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes.
6. Does the relief in the Notice apply to estate and gift taxes? No, normal filing and payment due dates continue to apply to estate and gift taxes.
7. Does this relief provide me with more time to contribute to my IRA for 2019? Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended.
8. Does this relief apply to state tax liabilities? No, this relief applies only to federal income tax payments. However, the state of Georgia has announced they will conform to the federal changes implementing a matching 90-day extension for tax filing and payments. 

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How the deadline impacts different taxpayers is contingent on a number of variables. The relief mainly applies to those taxpayers filing a federal income tax return. For this reason, it’s essential to speak with a qualified tax accountant to determine how you will be impacted. If you have questions about the information outlined above, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us.