Ordinarily, we would be a little less than a month away from the infamous mid-April tax deadline. But not this year.
As a result of the economic fallout from the coronavirus, President Donald Trump has ordered the Internal Revenue Service (IRS) to postpone the federal income tax filing deadline by three months.
The postponement was announced Friday on Twitter by Treasury Secretary Steven Mnuchin. “At [President Trump’s] direction, we are moving Tax Day from April 15 to July 15,” Mnuchin wrote. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
This Twitter message follows up on statements Mnuchin made earlier in the week. On Tuesday, he revealed that the Treasury was looking to allow some $300 billion in tax payment deferrals, up to $1 million for individuals and $10 million for businesses. The planned deferral period was 90 days.
The earlier announcement initially caused some confusion as to whether the deadline for both federal income tax filings and payments had been postponed. But now, with Mnuchin’s tweet, it’s been made simple. Americans indeed now have until July 15 to both file and pay their federal taxes without incurring penalties and interest.
Confirming Mnuchin’s tweet, the IRS has issued Notice 2020-08, which you can read here.
That’s not all
With that said, you are probably still wondering about your state tax returns. Are those delayed as well?
It appears that the answer is yes, state taxes are similarly delayed. But, here, the approach is a little bit more varied.
Many states have followed the U.S. Treasury’s lead by delaying state taxes, but each one has done so in its own way. Not only that, but each state has come up with different requirements for the different types of taxes that will be filed, one for individuals, one for businesses, and so forth.
Here, it would be in your best interest to look up the requirements for your own state, which you can do in this handy document provided by the American Institute of Certified Public Accountants.
So, thanks to President Trump and the coronavirus, those of us who treat filing taxes like a homework assignment that we don’t want to do, have more time to procrastinate.
Taxpayers, however, do not have to wait until July 15th to do the deed. Returns can be filed anytime between now and then.