In response to the Coronavirus (COVID-19) outbreak, on March 18, 2020 the Department of the Treasury and the Internal Revenue Service issued a statement in which they are providing special relief for taxpayers and businesses for payments that are due by April 15, 2020. These taxpayers and businesses have only been extended time to make these payments, however as of the date of this post, the IRS has not officially extended the time to file, meaning the due date for filing your tax return is still April 15, 2020. If more time is needed, an extension may be filed. Please keep in mind that this extension to file is not automatic, the tax payer and or business must still file for the extension in order for it to be granted. This extension will give those who apply for it an additional 6 months.
According to the IRS website the payment relief includes those individuals whose income tax payment deadline is April 15, 2020, for up to $1 million of their 2019 taxes due. This applies to individuals, self-employed, and all entities other than C-Corporations, such as trusts or estates. They will be awarded automatically 90 days, extending the payment due date to July 15, 2020. They continue saying, "Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020." However, if you file an extension of time to file (IRS Form 4868) you will automatically avoid paying penalties and interest on the taxes paid by July 15.
For more information, read the full article at the IRS website here.
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