Deadlines to File Taxes and to Pay Taxes Owed Extended – Updated March 26, 2020
March 26, 2020
Updated: March 26, 2020In an effort to curb financial constraints caused by the COVID-19 pandemic, the Internal Revenue Service (IRS) has postponed the filing and payment due dates for Federal income tax returns until July 15, 2020. This extension allows individuals (including married individuals filing jointly) and companies to defer filing of their federal income tax return and payment of federal tax liabilities until July 15, 2020. The previous limitation on the amount of federal tax liability that could be postponed has been removed. Additionally, the IRS has also postponed the due date for Federal estimated income tax payments which were due on April 15, 2020.The federal filing and payment due dates have automatically been postponed, so taxpayers do not need to do anything to advantage of the extension. Please note that interest and penalties will start to accrue as of the extended due date for payments made after July 15, 2020. Taxpayers will need to file 2019 income tax returns and pay 2019 federal tax liabilities on or before July 15, 2020.If you are a taxpayer who is expecting a refund, we recommend that you file your taxes as soon as possible. At this point, federal refunds are still expected to be received within 21 days of submitting a return.The Iowa Department of Revenue (IDOR) has also extended both payment and filing deadlines until July 31, 2020. This extension allows Iowa taxpayers to defer filing the following Iowa tax forms if they have not been filed already:IA 1040, Individual Income Tax ReturnIA 1040C, Composite ReturnIA 1041, Fiduciary ReturnIA 1120, Corporate Income Tax ReturnIA 1120F, Franchise Tax Return for Financial InstitutionsIA 1065, Iowa Partnership ReturnIA 1120S, S Corporation ReturnCredit Union Moneys and Credits Tax Confidential ReportTaxpayers who have filed or will file one of the above forms and owe or will owe a tax liability to the state can defer payment until July 31. The IDOR will waive any penalty and interest charges on taxes owed until that date. At this time, there does not appear to be a monetary limit on the amount of tax liabilities that can be deferred. Late payment penalties and interest will begin to accrue on August 1, 2020. Please note, that estimated tax payments due to the IDOR remain due on their normal due dates.Please contact any of our tax attorneys if you need additional guidance regarding this topic.* The information provided in this article reflects guidance as of March 26, 2020. Any subsequent government action will need to be considered. Shuttleworth and Ingersoll will continue to closely monitor federal and state tax updates as they are released.
Sarah C. Barr