The Government just announced a three-month extension on this year’s April 15 US tax payment deadline for the 2019 tax year.  In other words, that the tax payment deadline is pushed back by 90 days for both individuals and corporations. As per the announcement, individuals and small business owners will be allowed to defer up to $1 million in tax payments (corporations can defer up to $10 million) for 90 days. Accordingly there will not be interest and penalties for these three months extension of payments.

There is no extension of tax filing deadlines. Therefore, taxpayers should continue to file their US tax returns, or request for an extension of time to file, by their normal due date to qualify for this relief.US taxpayers residing abroad will also get the tax payment deferral relief but their return filing dates have not been changed by this announcement.

It is clarified that the tax filing due dates are also extended to 15th July 2020. Read the Filing and Payment Deadlines Questions and Answers

1st Estimated tax payment also extended

The relief also extends the first estimated tax payments for tax year 2020 that are due on April 15, 2020. So , no penalty for estimated tax .

Effect on refunds

The announcement does not affect the date of getting refunds. That depends on how soon you file the tax return. So, file your tax return as soon as possible to get the refund issued to you at the earliest.

What about state tax return?

The announcement is for federal tax only . California has announced relief on tax filing and payments due to coronavirus. For instance, California has pushed its tax filing and payment deadline to June 15 .

Prashant Thakur

Prashant Thakur

Prashant Thakur is a practicing tax advisor on Income Tax Act of India . He also blogs on US taxation law (IRC) . He has more than 30 years of experience in dealing with tax issues ( 20 years on the other side of the table i.e for Income Tax department) . He has written three books - Tax Evasion Through Shares( 2008 & 2012) , Taxing Question Simple Answer (2013) and Crypto Taxation in USA (2022) . Other than taxation , he has great interest in cloud technology, WordPress and is found of small tech company .
Prashant Thakur
Prashant Thakur
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