IRS Delays Deadlines

Posted on

(Updated 3/30/20) (Updated Oregon State and City of Portland/Multnomah County information)

For most taxpayers, including corporations, the deadline to both FILE and PAY federal income taxes has been delayed until July 15. The federal government has now actually changed the due dates for returns. Interest and penalties are waived until July 15, 2020.

We have filed extension requests for all of our clients. For individuals, this means that the due date for tax return filing is October 15, 2020. Interest and penalties will begin to accrue on unpaid balances after July 15, 2020.

For individuals, the taxes covered by the waiver include any tax due on April 15 with form 1040 (income tax, self-employment tax, etc…). It also covers the first quarter estimated tax payment which is normally due on April 15. Based on the initial guidance, the total of tax payments that could be postponed for an individual was $1 million. However, newly updated guidance has removed that limit. Now, any amount of tax may be deferred until July 15, 2020 without interest and penalties.

The due date for entities filing 1041 forms has been changed in the same manner as 1040s.

The due date to make IRA contributions for 2019 has been changed to July 15, 2020. In addition, employer retirement account contributions that were due by April 15, 2020 are now due by July 15, 2020.

The due date to make contributions to a HSA plan for 2019 is now July 15, 2020.

C Corporations with tax due April 15, 2020 may also defer filing and payment until July 15, 2020 without accruing interest and penalties.

The second quarter estimated tax payment for both individuals and C corporations, which is due June 15, 2020, is not delayed. While the first quarter federal estimated tax payment is due by July 15, 2020, the second quarter payment is due by June 15, 2020.

Businesses that will owe Oregon’s CAT tax, should make a good-faith estimate for the first quarter by the end of April.

Oregon has extended the due dates for filing most income tax returns until July 15. The due date for the first and second quarter estimated tax payments for 2020 has not been extended. Those payments are due on April 15 and June 15, 2020.

The City of Portland and Multnomah County have also extended the due for filing the business license forms and paying any balance due until July 15. Like Oregon State, the first and second quarter estimated tax payments are due on the normal dates.


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