Questions and Answers on Filing and Payment Due Dates
Earlier this week, the IRS released Notice 2020-18 (the “Notice”), providing that the due date for filing federal income tax returns and making income tax payments otherwise due April 15, 2020, is automatically postponed until July 15, 2020. This new guidance raised multiple questions, which the IRS answered with the release of some filing and payment deadline FAQs. Certain issues remain outstanding, and we will continue to provide guidance on those as more information is received.
Q. What are the form numbers of the specific federal income tax returns whose filing deadlines have been postponed from April 15 to July 15?
A. The Notice postpones the filing and payment of federal income taxes reported on the following forms:
- Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS/li>
- Form 1041, 1041-N, 1041-QFT
- Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF
- Form 8960
- Form 8991
CB Commentary: The deadline to file any forms attached to and taxes paid with these forms is also postponed. This is including, but not limited to, Schedule H and household employee taxes, the 10% penalty on early retirement withdrawals, and, as further explained below, certain international information returns. Additionally, any tax due with these forms can be paid on July 15, even if the returns are filed by April 15.
Q. What about nonprofit organizations that file Form 990-T?
A. With respect to Form 990-T, if that Form is due to be filed on April 15, then it has been postponed to July 15. For taxpayers whose Form 990-T is due on May 15, that due date has not been postponed.
CB Commentary: Although not specifically stated, because the Form 990 is an information return, rather than an income tax return, its deadline has not been postponed.
Q. Does the relief apply to payroll or excise taxes?
A. No, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes.
CB Commentary: As explained above, there is an exception for payroll and/or excise taxes paid with an income tax return on a Form 1040 or Form 1120 series.
Q. Does the relief apply to estate and gift taxes?
A. No, normal filing and payment due dates continue to apply to estate and gift taxes.
CB Commentary: Although this does not apply to estate tax returns, note that the deadline for filing underlying trust returns, Forms 1041, is postponed.
Extensions and Refunds
Q. What if a 2019 income tax return that would have been due on April 15 cannot be filed by July 15?
A. An automatic extension to file your federal income tax return by October 15 can be obtained so long as the extension request is filed by July 15. To avoid interest and penalties when filing your tax return after July 15, pay the tax you estimate as due with your extension request.
Q. How does this apply to fiscal-year taxpayers whose 2019 income tax returns are on extension and due on April 15?
A. If a federal income tax return for a fiscal year ending during 2019 is due on April 15, whether that is the original or extended due date, the due date is postponed to July 15.
Q. Does this relief provide more time to file a refund claim for the 2016 calendar year, which would otherwise be due by April 15?
A. No, the relief provided for filing federal income tax returns applies only to federal income tax returns for the 2019 taxable year. The Notice does not extend relief to any filings or payments for taxable year 2016, or any year other than 2019.
Q. Does this relief postpone the time for filing Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax?
A. No, the time for filing Form 4466 is not postponed. However, you may request your refund by filing your income tax return.
Estimated Tax Payments
Q. Does the Notice postpone the deadline for second quarter 2020 estimated income tax payments due on June 15?
A. No, second quarter 2020 estimated income tax payments are still due on June 15. First quarter 2020 estimated income tax payments are postponed from April 15 to July 15.
Retirement Plans and Other Benefits
Q. Does this relief postpone the time for 2019 IRA contributions?
A. Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15.
Q. I made excess elective deferrals to my 401(k) retirement plan in 2019. Do I have to take those excess deferrals (and income) out of the retirement plan no later than April 15?
A. Yes, because that date is not also extended as a result of this relief.
Q. For a calendar-year employer, what is the deadline for the employer to make contributions to their SEP or qualified retirement plans that can be deducted on their 2019 income tax return?
A. Just like the IRA contributions, calendar-year employers have until July 15 to make contributions to their SEP, qualified profit sharing, and money purchase pension plans and still deduct the contributions in 2019 to the extent the limits are not exceeded.
Q. Does this relief provide me more time to contribute money to my HSA or Archer MSA for 2019?
A. Yes. Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing federal income tax returns is now July 15, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15.
Q. Does the relief apply to section 965(h) installment payments due on April 15?
A. Yes, the relief applies to section 965 installment payments due on April 15. For any taxpayer whose federal income tax return filing due date has been postponed from April 15 to July 15, the due date of that taxpayer’s section 965 installment payment has also been postponed to July 15.
Q. Does the relief apply to estimated payments for a corporation required to make payments under section 59A (Basis Erosion and Anti-Abuse Tax, or BEAT)?
A. Yes, for any taxpayer whose federal income tax return filing deadline has been postponed from April 15 to July 15, the due date for Form 8991 and the BEAT payment has been postponed to July 15.
CB Commentary: There remain some unanswered questions in the International area regarding the filing of international information returns, such as Forms 5471, 5472, 965, 8865, 8858, etc., Because these forms are filed as attachments to a federal income tax return, their deadline follows that of the federal income tax return to which they are attached. As a result, the deadline to file any international information returns that are filed as attachments to income tax returns with a deadline of April 15 has been postponed to July 15.
Form 3520 is generally due on the 15th day of the fourth month following the end the U.S. person’s tax year for income tax purposes, which, for individuals, is April 15. However, if a U.S. person is granted an extension of time to file an income tax return, the due date for filing Form 3520 is the 15th day of the 10th month following the end of the U.S. person’s tax year. It is unclear whether an extension filed on July 15 will serve to extend the deadline for filing a Form 3520. Therefore, at this time, the safest course of action is to file the Form 3520 or an extension for the income tax return on April 15.
Form 3520-A is due on the 15th day of the 3rd month following the end of the trust’s tax year. Because Form 3520-A is not an income tax return, a trust with a year end of January 31 would still have to file a Form 3520-A by April 15.
Reports of Foreign Bank and Financial Accounts (“FBARs”) are due on April 15, but a taxpayer who fails to timely file will automatically receive an extension to October 15.
Please note that this is developing news. There will no doubt be more developments, and we will keep you updated as they are released. Should you have any questions, please do not hesitate to contact your tax professional team members.
Cherry Bekaert remains committed to providing you a superior client experience. We continue to work hard and creatively to meet your tax return needs and encourage you to submit your tax information to us as you can.