Federal Tax Extension
In light of Covid-19, the Federal Government recently announced that it would grant tax payers a 90 day extension for making tax payments owed to the Government. The Federal government has now announced that it will also grant a 90 day extension for the filing of federal taxes. The filing deadline that would have normally been April 15, 2020, has been postponed to July 15, 2020. Taxpayers and certain businesses will have additional time to file without penalty.
The purpose of the filing deadline extension is to combat the financial burden that the recent coronavirus pandemic has had on individuals and the economy at large. The deadline extension allows individuals and businesses to keep their money longer due to losses in income and revenue caused by the coronavirus pandemic.
The 90 day extension to file taxes only applies to federal taxes. The newly announced deadline does not apply to State tax filing deadlines unless your individual state has opted to follow the federal 90 day extension. The Treasury Secretary further indicated that individuals that anticipate a tax refund may still file for their refund now.
If you have any questions regarding the application of this new law and how it may affect you or your business, please call 309-662-5084.