As the impact of the Coronavirus has spread, many people have been asking for guidance about how this might impact your 2019 taxes. On March 13, the President issued an emergency declaration that empowered IRS to extend deadlines for affected taxpayers. In this instance, affected taxpayers are…everyone.
However, it still falls to the IRS to determine when and how to extend relief under these provisions. Many outlets have been reporting that a blanket extension of time to file was being granted. At this moment, that is not the case. What the IRS has done, as outlined in IRS Notice 2020-17, is to suspend penalties and interest for any 2019 tax payments due by April 15, and for the 1st Quarter 2020 estimated tax payment, also due April 15. This gives all taxpayers until July 15 to make these payments without fear of penalties or interest being charged.
Keep in mind that this does not extend the filing date of April 15. If you are not prepared to file a final 2019 return before April 15, you do still need to file for an automatic extension. This also means the deadline to fund HSAs or IRA contributions remains April 15.
This is obviously an unusual time with almost daily changes. We will keep our website and Facebook page updated with the latest information as circumstances change.