MULTIPLE IRS DEADLINES ON JULY 15TH – IMPORTANT REMINDERS
The U.S. Treasury’s COVID-19 (coronavirus) pandemic relief efforts included postponing many IRS deadlines to July 15, 2020. As a result, numerous federal tax forms and payments are due this week. The most important July 15 IRS deadlines to keep in mind include:
2019 INDIVIDUAL FEDERAL TAX RETURN FILING: U.S. resident individual and joint tax filers, along with U.S. citizens and resident aliens living abroad or on military duty, must file 2019 Form 1040 or 1040-SR and pay any tax due. If you cannot file your return by the deadline, request an automatic filing extension to October 15 by submitting Form 4868. However, if you expect to owe tax, estimate the amount and pay it by July 15 to avoid late payment penalties. (Military personnel in combat zones may be entitled to filing extensions beyond October 15.)
FIRST TWO 2020 QUARTERLY ESTIMATED TAX PAYMENTS: If you earn income and either do not pay federal taxes through paycheck withholding or do not expect your withholding to cover your 2020 tax obligations, you may need to make quarterly estimated tax payments. In particular, this requirement applies to many self-employed taxpayers and “gig economy” workers. Your first two quarterly estimated payments for 2020 (payments for Quarter 1 and Quarter 2) are due on July 15.
DEADLINE FOR 2019 IRA AND HSA CONTRIBUTIONS: You may be able to treat contributions made by July 15 to your IRA or health savings account (HSA) as 2019 contributions, provided you have not reached your 2019 contribution limit.
2019 FEDERAL TAX AND 2020 ESTIMATED TAX DEADLINES FOR CORPORATIONS: Corporations must file their 2019 federal income tax returns and pay any tax due, and also make their first two 2020 estimated income tax payments, by July 15.
The IRS urges taxpayers who cannot pay the tax they owe to file by the July 15 deadline and pay what they can. By making a payment in any amount now and setting up a payment plan, you may be able to significantly reduce penalties and interest charges.