Administration Action on Coronavirus // Tax Administration

March 23, 2020
(Updated 4/14/20)

Where can I find additional information from the IRS on Coronavirus Related Tax Relief?

IRS has taken numerous actions to provide relief taxpayers due to the national effort to defeat COVID-19. This includes a comprehensive Coronavirus page at IRS.gov that gathers valuable taxpayer resources into one place. Some of those key resources can be found using the links below.

  • The IRS Coronavirus Resource page can be found HERE.
  • Details on IRS Tax Enforcement Relief can be found HERE.
  • Economic Impact Payment Details can be found HERE.

I owe back taxes from a previous tax year, does the IRS filing extension stay any penalties on my back taxes?

 

The current tax filing deadline extension and relief only applies to payments that were previously due on April 15. Any payments due on April 15 are now due on July 15. We do expect the IRS to issue additional relief to taxpayers, but we don’t know when that announcement will come or what it will include. Taxpayers in this situation should watch for additional IRS announcements about further relief.

 

The IRS is also taking actions to defer certain enforcement actions under its “People First Initiative.” Nothing in this initiative expressly extends relief to people who owe back taxes, but some relief still may be applicable if the taxpayer is working with the IRS already through an installment agreement or the offer in compromise process.

 

Taxpayers in this situation should review the information the IRS released regarding its People First Initiative to see if any of the scenarios described there might be relevant to his or her situation. Information on the “People First Initiative” can be found here.

If my taxes are due on a date other than April 15, is my filing obligation and payment delayed to July 15 as well?

No. For instance, tax payments due from some tax exempt organizations on May 15 or second quarter estimated business taxes due on June 15 have not been extended. If you have a filing obligation or payment obligation on any date other than April 15, you should still file and pay as normal.

What is the special filing and payment relief announced by the Treasury Department?

All taxpayers qualify for the option to delay filing of their tax returns and payment of any tax debt due on April 15 until July 15, 2020 with no penalties or interest.

Who is eligible for tax deferral?

All individual and business taxpayers.

If I am eligible, do I still need to file my taxes by April 15?

No. The tax filing deadline has also been extended to July 15, 2020. This maximizes flexibility for taxpayers during this challenging time. For taxpayers that expect to receive a refund, you are still encouraged to file as soon as possible. The sooner you file, the sooner you can receive your refund.

I pay estimated taxes. Am I eligible for a tax deferral?

Payment relief is only for 2019 income tax payments and 2020 estimated income tax payments due on April 15, 2020. So if you have a tax payment that is due on another date, such as May 15 for some exempt organizations or any date other than April 15, this relief does not apply to you.

 

 

(Updated 4/14)