With the number of COVID-19 cases on the rise in the United States, the federal government has taken steps to minimise the impact on taxpayers. The new guidance, revealed by the Treasury Secretary Steven Mnuchin, states that the new due date for filing tax returns and making tax payments has been extended to 15 July 2020.
Taxpayers can defer federal income tax payments without incurring penalties and interest, regardless of the amount owed. The deferment applies to all taxpayers, including individuals, estates, trusts, corporations and other non-corporate tax filers as well as those that pay self-employment tax.
It is not necessary for taxpayers to file any additional forms or contact the IRS to qualify, it is an automatic extension for all. Individual taxpayers who need additional time to file beyond 15 July 2020, must request a filing extension by filing Form 4868 through a tax professional, tax software or using the Free File link on IRS.gov. If a business needs additional time, it must file Form 7004.
The Internal Revenue Service (IRS) is urging taxpayers due a refund to file as soon as possible. The majority of tax refunds are still being issued within 21 days.
Learn more about the United States’ tax and payroll system with our Global Insight Guide to the USA: the guide contains information and insight into the USA’s global economic profile, major industries, and common business practices
