Individual Taxpayers and C-Corporations businesses will have until July 15, 2020 to file and pay their taxes this year. The change was announced on Tuesday afternoon by Treasury Secretary Steven Mnuchin, following President Donald Trump's declaration of a national state of emergency in the United States as a result of efforts to combat the Covid-19 Coronavirus pandemic and minimize economic disruption. Last week, the president announced he would ask the Treasury Department and IRS to extend the deadline.
The filing deadline is still 4/15/20 until the IRS issues official guidelines.
S-Corporations and partnerships had to file their 2019 tax returns by March 16th, so are not affected by this announcement.
Taxpayers and small businesses that traditionally face an April 15 tax deadline will be allowed more time to file, and also they can wait to pay their taxes due, until the new deadline of July 15, 2020, with no penalties or interest charges. All individual U.S. taxpayers qualify for this extension and do not have to file any special paperwork or extension requests, as the deadline will be automatically extended.
The president also recently released disaster aid, urged each state to set up emergency operations centers, and hospitals to ramp up emergency response plans. Also announced is the waiving of interest on federally held student loans during the state of emergency.
Taxpayers owing up to $1 million in taxes can delay payment until July 15, as can corporate filers with tax debts up to $10 million. No announcement was made as to whether there will be an extension for quarterly estimated payments normally due on April 15.
“We encourage those Americans who can file their taxes to continue to file their taxes on April 15,” Mnuchin said. “Because for many Americans, you will get tax refunds.”
With a change in the federal filing deadline, most state legislatures are likely to follow suit, since most taxpayers file their federal and state income tax returns at the same time. Seven states do not have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Additionally, Tennessee and New Hampshire do not tax earned wages. California had already extended the state deadline to June 15.
Such a change in the deadline for individuals to file their annual federal income tax returns is unprecedented at the national level, although the IRS often grants such extensions to more limited geographical areas following disasters. Earlier this month, for example, taxpayers affected by the recent Tennessee tornadoes were granted relief until July 15 of this year.
The change will have no effect on the millions of Americans who have already filed their taxes this year.