Tax Filing Extensions
Over the past few weeks, the IRS has provided guidance (in response to the COVID-19 Coronavirus) regarding the filing requirements of your 2019 tax return, as well as when tax payments to the IRS are due. This is where things stand as of today, 3/23/2020:
Filing Requirements: The IRS has extended the deadline for filing inpidual income tax returns to 7/15/2020. Minnesota Governor Tim Walz announced plans on 3/21/2020 for Minnesota to follow suit.
Federal Tax Payment Due Date: All tax payers can defer making payment of any amount owed to the IRS until 7/15/2020, without interest or penalties. Our recommendation for those that have a federal balance due would be to hold onto those payments in your high-yield savings account until the 7/15/2020 due date.
The new three-month extension is available to any federal taxpayer, without a limit on amount owed, including inpiduals, trusts and estates, corporations, non-corporations and those who pay self-employment tax.
Note that this extension of time to pay also applies to the first quarter 2020 estimated tax payments that would have been due 4/15/2020.
As of the date of this post, Minnesota has not issued any guidance regarding an extension of Minnesota’s tax payment due date.
We will keep you updated on any additional changes should they occur.