With the coronavirus spreading unimpeded through the United States from Florida to California, we’re all dogged by questions. How will this affect the economy? Our retirement? Our businesses? And, given the timing of the coronavirus outbreak, it’s worth asking another question.
How will it affect tax season?
When to File
This date has been a moving target. But on March, 20th, the US Treasury Secretary Steven Mnuchin announced that Tax Day 2020 is would officially move to July 15. That means that you are not required to file an extension by April 15. This is a reversal of earlier announcements from the US government.
The New Dates
The federal government announced this week that tax filers will now have until July 15th to pay their 2019 taxes. Taxpayers are no longer required to file any kind of extension—regardless of whether you owe taxes or not. Like anything in this evolving situation, the July 15 extension date may change.
When it comes to filing 2019 taxes for your business, corporations can defer $10 million or less for up to 90 days—until July 15—with interest and penalties automatically waived.
Individuals filing their personal 2019 taxes can defer up to $1 million in payments for 90 days. No action is required by the traditional April 15 deadline.
The deadlines for state taxes are changing rapidly as the coronavirus sweeps across the country. Early states offering extended deadlines include California, Maryland, and Connecticut, but you should check your state’s tax board for the latest updates and extensions—which are expected from coast to coast.
As the crisis evolves across the country, the news changes rapidly. These dates, requirements, and deadlines may change at any time. In this moment of uncertainty, anything may change, even something as certain as taxes.