IRS Addresses Filing and Payment Questions
In response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency, the Treasury Department and the Internal Revenue Service (IRS) recently announced special federal income tax return filing and payment relief in Notice 2020-18. We have selected some of the more significant IRS answers to the questions we have been receiving most. Information may change in the future and will be monitored.
Please note that the answers provided are in response to general inquiries and are not citable as legal authority. Accordingly, the Treasury Department and the IRS are continuing to consider additional IRB guidance on these issues. We encourage you to visit our website and/or follow us on social media for additional helpful resources and news postings.
Q. Who is eligible for relief under the Notice?
A. Any person with a Federal income tax return or payment due on April 15, 2020, is eligible for relief under the Notice. “Person” includes any type of taxpayer, such as an individual, a trust, an estate, a corporation, or any type of unincorporated business entity. The payment due refers to both 2019 Federal income tax payments (including payments of tax on self-employment income) and 2020 estimated Federal income tax payments (including payments of tax on self-employment income), regardless of the amount owed. The return or payment must be due on April 15, 2020 – this relief does not apply to Federal income tax returns and payments due on any other date.
Q. Do I have to actually be sick, or quarantined, or have any other impact from COVID-19 to qualify for payment relief?
A. No, you do not have to be sick, or quarantined, or have any other impact from COVID-19 to qualify for relief. You only need to have a Federal income tax return or payment due on April 15, 2020, as described above.
Q. What about businesses or other entities that have filing due dates on May 15, June 15, or some other date besides April 15. Have their filing and payment deadlines been postponed?
A. No, any taxpayers who have filing or payment due dates other than April 15 have not been granted relief at this time.
Q. Does the relief provided in the Notice apply to payroll or excise taxes?
A. No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes.
Q. Does the relief provided in the Notice apply to estate and gift taxes?
A. No, normal filing and payment due dates continue to apply to estate and gift taxes.
Q. I already filed my 2019 income tax return that would have been due on April 15 and I owe taxes, but I haven’t paid yet. What do I need to do to avoid interest and penalties?
A. To avoid interest and penalties, pay your taxes in full by July 15, 2020. If you filed Form 1040 or Form 1040-SR, the tax payment amount can be found on line 23. If you filed Form 1040-NR, the tax payment amount can be found on line 75. For a corporation filing a Form 1120, the tax payment amount can be found on line 35. Interest and penalties will begin to be charged after July 15 for any amount remaining unpaid by that date.
Q. I already filed my 2019 income tax return that would have been due on April 15 and scheduled a payment of taxes for April 15, 2020. Will this payment be automatically rescheduled to July 15, 2020?
A. No, the payment will not be automatically rescheduled to July 15. If you do nothing, the payment will be made on the date you chose. Here is information on how to cancel and reschedule your payment:
- If you scheduled a payment through IRS Direct Pay, you can use your confirmation number from the payment to access the Look Up a Payment feature. You can modify or cancel a scheduled payment until two business days before the payment date. The email notification you received when you scheduled the payment will contain the confirmation number.
- If you scheduled a payment through Electronic Federal Tax Payment System (EFTPS), click on Payments from the EFTPS home page, login, then click Cancel a Tax Payment from the left menu and follow the instructions. You must do so at least two business days before the scheduled payment date.
- If you scheduled a payment as part of filing your tax return (authorizing an electronic funds withdrawal), you may revoke (cancel) your payment by contacting the U.S. Treasury Financial Agent at 888-353-4537. You must call to make a payment cancellation request no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
- If you scheduled a payment by credit card or debit card, contact the card processor to cancel the card payment
Q. The Notice postpones the deadline for first quarter 2020 estimated income tax payments due on April 15, 2020. What about second quarter estimated tax payments due on June 15? Have they been postponed as well?
A. No, second quarter 2020 estimated income tax payments are still due on June 15, 2020. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15, 2020
Q. Does this relief provide me more time to contribute money to my IRA for 2019?
A. Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020. For more details on IRA contributions, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
Q. Does this relief provide me more time to contribute money to my HSA or Archer MSA for 2019?
A. Yes. Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020. For more details on HSA or Archer MSA contributions, seePublication 969, Health Savings Accounts and other Tax-Favored Health Plans.
For the comprehensive Q&A by the IRS, you may view it [here]. Please contact us with questions at 401-831-0200. We will continue to send information as it becomes available.