Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act), the Secretary of Treasury was instructed to provide additional tax filing relief to taxpayers affected by COVID-19. Therefore, the prior tax payment relief notice was superseded and expanded. Below is a breakdown of the provisions.
Q. How has the prior tax PAYMENT relief changed?
A. Now the due date for filing federal income tax returns AND making federal income tax payments have been postponed to July 15, 2020
Q. Do I have to do or file anything to get the additional time to file and pay?
A. No. The payment and filing requirements will automatically be postponed to July 15, 2020.
Q. Is there still a dollar or income limit applied to the filing or payment relief?
A. No. There is no longer a limitation on the amount of the payment that may be postponed.
Q. Who does this relief apply to?
A. All “persons” with an income tax filing requirement, including individuals, trusts, estates, partnerships, associations, and corporations.
Q. What taxes does this apply to?’
A. As with the prior provision, this relief applies to federal income tax for 2019 and estimated tax payments for 2020 due April 15, 2020.
Q. Does this apply to my federal payroll taxes or filing?
A. No. This notice does not provide extensions for any other federal tax or information return. It is our hope that additional payroll tax provisions will be provided for employers. We will alert you if those changes come.
Q. Does this also apply to my state and local income taxes?
A. Some states are beginning to provide similar payment and/or filing extensions. You will need to check with your state for more details. As of this writing, Michigan has not announced any filing and payment extensions.
Q. Does this mean that I have to wait to file my return?
A. No. HAS is encouraging taxpayers to file now! For taxpayers expecting refunds, those resources will be helpful during this challenging time. For those that will have a tax due, it will be important to know how much is due so that you can plan appropriately to have the funds available to make your tax payment on July 15, 2020. In addition, you may still be required to file your state and local income tax returns by April 15, 2020.
Update: On March 27, 2020, the IRS also postponed the gift and generation-skipping transfer tax return and payment due date to July 15, 2020.