- December 28, 2022
As has been well publicized, the IRS moved the tax deadline for individual taxpayers from April 15th to July 15th in response to the COVID-19 pandemic.
If you haven’t filed your 2019 tax return (and don’t have an extension), be sure to file by July 15th!
As a reminder, here’s what this means…
New “tax day”
Both the tax filing date and tax payment date are now July 15th.
It is automatic
The relief applies automatically. No new tax form must be filed.
If you owe tax
If you have a tax balance due with your federal tax return, it was not necessary to make the payment on April 15th. Instead, you could delay payment until July 15th.
Note that most tax software programs did not update their software by April 15th to print the extended dates on the filing instructions and transmittal letter generated by CPAs and other tax professionals.
Your first quarter federal estimated tax payment could also be delayed until July 15th. In addition, the IRS clarified that second quarter estimated tax payments may also be paid on July 15th instead of June 15th.
Minnesota and other states
Minnesota and many other states have provided similar relief. Taxpayers owing Minnesota tax could delay payment until July 15th consistent with the federal directive.
Minnesota, however, did not extend the due date for quarterly estimated tax payments. They were still due on April 15th and June 15th.
Provisions for other states are updated on the website for each state’s tax department. The American Institute of CPAs (AICPA) has a comprehensive (several hundred page) chart on its website showing every state’s actions in response to COVID-19.
IRAs and HSAs, etc.
The IRS clarified that taxpayers have until July 15th to make 2019 contributions to regular or Roth IRAs, SEP-IRAs or other retirement plans, or to Health Savings Accounts.
However, unless there are cash flow concerns, we suggest making these contributions as soon as possible since there are no tax or investment advantages to delaying and to insure that the contribution is properly coded as for 2019 (and not 2020).
As always, please let us know if you have any questions or concerns. Be well.
Tom Irwin, J.D., CPA/PFS, CFP®
Certified Public Accountant
Certified Financial Planner®