IRS and Treasury Announce Expanded Tax Relief Measures; Extend Deadlines

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The IRS and Treasury have announced special federal income tax return filing and payment relief in response to the ongoing Coronavirus (COVID-19) emergency. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Additional guidance can be sought here.

Extension of Deadlines

A variety of tax-filing and payment deadlines falling on or after April 1, 2020, and before July 15, 2020, are postponed until July 15, 2020. Federal tax payments can be deferred to July 15 without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts, estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by (1) filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return; and (2) submitting an electronic payment and selecting Form 4868 or extension as the payment type. However, taxes would still be due by the July 15 due date.

Scheduling and Rescheduling Payments

Taxpayers can schedule their payment electronically online, by phone or using their mobile device and the IRS2Go app. Moreover, those who cannot pay the full amount owed by July 15 may qualify for a payment plan or can apply for an offer in compromise. Penalties and interest will begin to accrue on unpaid tax liability beginning July 16. Those looking to reschedule or schedule their federal tax payments can use the (1) Electronic Federal Tax Payments System; and (2) debit, credit card or digital wallet. Finally, taxpayers who filed electronically and scheduled their payment with an electronic funds withdrawal, and want to reschedule their payment to the July 15 due date, can call the e-file Payment Services automated line at 1-888-353-4537 to cancel their payment no later than 11:59 p.m. Eastern time.