IRS provides relief for 2019 tax filing deadline in response to coronavirus pandemic
In response to the coronavirus pandemic, the Internal Revenue Service (IRS) recently released IRS Notice 2020-18 providing relief from certain Federal income tax return filing and payment deadlines. For Affected Taxpayers that have a Federal tax filing deadline of April 15, 2020 for the 2019 year, the tax filing deadline is extended to July 15, 2020. Under this relief:
- An Affected Taxpayer is an individual, trust, estate, partnership, association, company or corporation with a Federal tax payment or Federal tax filing deadline of April 15, 2020.
- This relief is available solely with respect to Federal income tax payments (including payments of tax on self-employment income) and Federal income tax returns due on April 15, 2020 in respect to an Affected Taxpayer’s 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020 for an Affected Taxpayer’s 2020 taxable year.
- The extended deadline is automatic - there is no requirement to file for this extension.
- There is no limit on the amount of the payment under the extended deadline.
- No interest or penalty will apply to the period between April 15, 2020 and July 15, 2020.
To clarify certain points in the Notice and respond to questions regarding the Notice, the IRS subsequently released Filing and Payment Deadlines Questions and Answers. Retirement plans and IRAs are addressed in questions 17 through 20 as outlined below.
- For distributions from an IRA or retirement plan taken in 2019 prior to attaining age 59 ½, the reporting and payment of the 10% early withdrawal penalty on the individual’s Federal tax return is extended to July 15, 2020.
- For employers with a Federal tax filing deadline of April 15, 2020, the deadline to make deductible contributions to their qualified retirement plan for the 2019 tax year is extended to July 15, 2020.
- If the 2019 elective deferrals to a qualified plan exceed the 2019 annual deferral limit, the excess deferrals must be returned to the individual by April 15, 2020 in order to exclude the distributions from income. There is no extension of this deadline.
- The deadline to contribute to an IRA each year is the IRA owner’s Federal tax filing due date for that year. For 2019 the tax filing date and therefore the deadline to contribute to an IRA for 2019, is extended to July 15, 2020.
It is important that taxpayers consult with a tax professional with regard to any questions around this tax relief.
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IRS Circular 230 Disclosure
Any tax discussion contained in this communication was not intended or written to be used, and cannot be used by the recipient or any other person, for the purpose of avoiding any Internal Revenue Code penalties that may be imposed on such person. Any tax discussion contained in this communication was written to support the promotion or marketing of the transactions or matter discussed herein. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Neither Voya Financial® or its affiliated companies or representatives offer legal or tax advice. Please seek the advice of a tax attorney or tax advisor prior to making a tax-related insurance/investment decision.