COVID-19 Relief: Extended Deadlines for Tax Return Filings and Contributions due on April 15, 2020

In response to requests for COVID-19 relief for businesses and individuals, the Internal Revenue Service (IRS) recently extended deadlines for the following:

  • Filing personal tax returns – the deadline for filing personal income tax returns has been extended from April 15, 2020 to July 15, 2020. The Internal Revenue Service recently clarified that the deadline for making contributions to Health Savings Accounts and Individual Retirement Accounts for the 2019 tax year has also been extended to July 15, 2020.
  • Employers’ federal tax filings – employers with a federal income tax return due date of April 15, 2020 now have until July 15, 2020 to file the federal tax return plus make contributions to their qualified retirement plans, because these employers are considered Affected Taxpayers under Notice 2020-18. According to the IRS FAQs, even business tax returns extended and due on April 15, 2020 may be extended to July 15, 2020. For example, if an employer is a C Corporation with an April 15, 2020 due date for filing the Form 1120, then the employer may make contributions to its workplace-based retirement plan for 2019 and file the return no later than July 15, 2020.  Presumably, if the tax return was not previously extended, employers may still file an extension of time to file their tax return after July 15, 2020 and have more time to make the contributions.

The IRS has prepared an FAQ about the changes caused by Notice 2020-18. Deadlines for state returns may be extended by their governments as well so we recommend you speak with your tax advisors regarding your Federal and State tax return due dates.

Not Legal Tax Advice: This newsletter is for general education purposes only. Nothing in this newsletter should be construed as tax or legal advice. TRI-AD may not be considered your legal counsel or tax advisor. If you have questions about how anything discussed in this newsletter pertains to your personal or your organization’s situation, we encourage you to discuss the issue with your attorney and/or tax advisor. TRI-AD’s communications are not privileged under attorney-client privilege.