IRS and Maryland Comptroller’s Office Extend Tax Filing Deadline to July 15 Due to Coronavirus Pandemic

On March 21, 2020 the Internal Revenue Service (IRS) extended the income tax filing and payment deadline for 2020 to July 15. The extension applies to 2019 annual income tax returns as well as first-quarter estimated tax payments for 2020. In a News Release announcing the extension, the IRS stated:

“[T]he federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. . . . Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.”

Since this is an automatic extension, taxpayers do not need to do anything in order to qualify. Those that need an extension beyond July 15 can submit a request using IRS Form 8468 (for individuals) or IRS Form 7004 (for businesses).

Taxpayers Can, But Do Not Have To, Wait to File Their Federal Returns

While taxpayers have the option to wait until July 15 to file their federal income tax returns, waiting is not mandatory. In fact, if you are entitled to a tax refund, the IRS encourages you to file now. The IRS’s News Release quotes Commissioner Chuck Rettig as saying, “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.”

The News Release also indicates that most refunds are still being issued within 21 days even though the IRS has been forced to limit its operations due to the novel coronavirus pandemic.

If You Have Already Filed and Scheduled a Payment for April 15, You Can Delay Your Payment

For taxpayers who owe the IRS and who filed prior to the IRS’s March 21 announcement, the IRS is providing the option to reschedule their payments to July 15. In order to do so, taxpayers must contact the U.S. Treasury Department or update IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS) at least two days prior to their scheduled payment date. Taxpayers who scheduled credit or debit card payments should contact their credit card company or bank.

Maryland has Also Extended the State Income Tax Filing Deadline to July 15

Maryland has also extended the state income tax filing deadline to July 15. Similar to the federal extension, this extension is automatic; and, according to Maryland Comptroller Peter Franchot, “No interest or penalty for late payments will be imposed if 2019 tax payments are made by July 15, 2020.”

Contact the Maryland Tax Lawyers at Thorn Law Group

The attorneys at Thorn Law Group represent Maryland residents and businesses in all state, federal and international tax matters. If you have questions and would like to speak with Managing Partner Kevin E. Thorn, please call 240-235-5096 or contact us online today.