IRS and Treasury Department Extend Filing Deadline to July 15
As reported earlier this week, on March 18, the IRS and the Treasury Department extended the payment deadline for tax returns to July 15 from April 15 in response to the coronavirus pandemic. Nonetheless, two days after releasing this guidance, the IRS and the Treasury also extended the filing deadline to July 15 from April 15 in Notice 2020-18.
This extension allows taxpayers three extra months to file their returns and pay what they owe the IRS. As of mid-March, filers had submitted 76 million individual returns, half of the 155 million total returns expected this year.
Even with the filing deadline extension, taxpayers should still file their taxes on time, because they might receive a refund.
How does this deadline affect taxpayers?
The IRS’s delay of the tax-filing date stems from pressure from Congress, tax preparers, and the public as the coronavirus pandemic upends American life and the economy becomes stagnant. The new filing deadline appears to extend other deadlines for taxpayer such as the April 15 deadline for making contributions to individual retirement accounts. However, the new guidance does not explain whether an automatic six-month extension to complete tax paperwork will remain October 15 or be extended to January 15, 2020. These details are still pending and need clarification by the agency.
Maggie Miller is a third-year student at the Charleston School of Law, where she concentrates her studies on tax policy and public finance. On behalf of Onyx Tax, LLC., Maggie writes weekly blogs to provide insight on various tax-related issues and policies.