The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) delivers some good news. There are things in it for individuals and businesses, including tax relief. The tax relief offered by the CARES Act is over and above the tax relief offered by the earlier Families First Coronavirus Response Act (FFCRA).
(This is not, by the way, tax advice. Consult the IRS or a tax professional to ensure you comply with the law.)
The IRS has postponed some federal tax payment deadlines. It has done the same with some federal tax return filing deadlines.
Individual taxpayers can defer federal income tax payments. This applies to those due on April 15 until. It moves the filing date to July 15. This relief covers any remaining amount owed with your 2019 Form 1040. It also applies to estimated 2020 tax payments that would otherwise be due on April 15.
This is also true for federal income tax payments for C corporations, trusts, and estates. This assumes the use of the calendar year for tax purposes. Thus normally these returns are otherwise by due on April 15.
Individuals owing federal gift tax and generation-skipping transfer tax (GSTT) for the 2019 tax year can defer payments that would otherwise be due on April 15. There are no limits on the amount of tax payments that can be deferred. No interest or penalties will be charged during the deferral period.
We’re from the federal government and we’re here to help
Here are the postponed federal tax returns filing deadlines. Deadlines to file the following returns otherwise be due on April 15 are postponed to July 15:
- Individual federal income tax returns for 2019 (Form 1040)
- C corporations federal income tax returns for 2019 (Form 1120) using the calendar year for tax purposes
- Trusts & estates federal income tax returns for 2019 (Form 1041) using the calendar year for tax purposes.
- Federal gift tax and GSST returns for 2019 (Form 709)
These returns would otherwise be due on April 15. Now you have until July 15 to file them. You do not need to submit an extension request to the IRS to be covered.
The deadlines for making 2019 tax year contributions to IRAS and HSAs also is postponed. The normal April 15 deadline for making IRA and health savings account (HSA) contributions for your 2019 tax year is postponed to July 15. The federal government does have some coronavirus related federal tax relief measures in place. If you owe money this can be an advantage for you. If not file now electronically and get paid… More on that in an article to come.
