Economic News

Tax Day 2020 is Now Officially July 15th Federally

Following a previous announcement that the Internal Revenue Service (IRS) would push back the 2019 tax payment deadline to July, the agency has not decided to delay the filing cut off as well. As a result, for 2020, Tax Day will not be on April 15th but July 15th instead.

Like with the payment deadline delay, taxpayers will not need to request this extension or file extra forms as this change will apply automatically, with no penalties or interest being applied. That said, those who still will need more time than the July deadline allows will need to file an extension as normal. Notably, the shift in filing date now means that the previous limits announced — $1 million owed for individuals and $10 million for C Corporations — will no longer apply. Instead this extension will apply to all taxpayers regardless of the amount owed.

While the delay may be welcomed news for those who expect to owe on their tax obligations, the IRS continues to recommend that those who anticipate receiving a refund file as soon as possible. With most refunds being issued within 21 days, taxpayers can then utilize these funds to help them through this difficult time. Furthermore the agency suggests filing electronically. As IRS Commissioner Chuck Rettig explained in a statement, “Even with the filing deadline extended, we urge taxpayers who are owed refunds to file as soon as possible and file electronically. Filing electronically with direct deposit is the quickest way to get refunds.”

Once again, like with the prior payment deadline announcement, it’s important to note that this July 15th deadline only applies to your federal tax return. This means that, depending on the actions of your state’s agencies, your state tax filings may still be due in April. For more information from your particular state’s tax agency, TaxAdmin.org offers a list and links to each.

Despite the new federal deadline — and considering that your state may still require an earlier filing — the best course of action may be to prepare your return as soon as you can. Then, if you do owe federal taxes, you can determine whether it makes sense to pay right away or wait until closer to the new July 15th due date. Furthermore, since in-person tax prep may not be available due to current circumstances, it may be worth exploring online options, many of which feature live tax (depending on what tier of service you purchase). Finally, since things can always continue to change, be sure to check IRS.gov for the latest information.