Coronavirus Updates

IRS Extends Tax Filing, Payment Deadlines in Response to Coronavirus

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July 15 pinned on a calendar to remind you an important appointment.

As a result of the fight against coronavirus, the IRS announced this week that individuals and business taxpayers can automatically delay the filing and payment of 2019 income and self-employment taxes from April 15th to July 15th.

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All U.S. individual and business taxpayers automatically qualify for both the filing and payment deferral.

So, what does this mean?

  • If your taxes weren’t going to be done by 4/15/20, you no longer have to file the Federal extension form or make payments by 4/15/20.
  • If your taxes will be done soon and you expect a refund, consider filing soon to get your refund as soon as possible.
  • If your taxes will be done sometime before 7/15/20 and you end up owing taxes, you have until 7/15/20 to file your returns and make the payment.
  • If your taxes will not be done before 7/15/20, an extension form and payment should be filed by that date.
  • 2020 estimated taxes due by 4/15/20 can be delayed until 7/15/20.

There is no need to rush through your taxes. Take the time now to work with your tax advisor to make sure you are capturing all of your legitimate tax deductions.

Related: How to Avoid the #1 Most Common and Costly Tax Mistake as a Real Estate Investor

We expect many states to offer the same or similar tax deferral benefits. The American Institute of CPAs has put together a state-by-state list on Changing State Tax Deadlines that can be found here.

letters taxes on wooden blocks with calculator and pen

As you know, things are constantly evolving in this unprecedented time, so do keep in close contact with your tax advisor.

Unlike the coronavirus, stock market, or toilet paper supplies, which are mostly outside your control, your taxes are something you have some control over.  2020 is just beginning, and there are lots of things you can do now to minimize your taxes for this year.

In fact, if you are stuck at home practicing social distancing, put that time to good use by organizing your tax info from 2019. Spend some time to get your tax savings plan set up for 2020. Maybe read up on a good book on how to invest or how to save on taxes.

Related: The Big Tax Benefits of Being a Real Estate Professional (& Exactly How to Qualify)

I know taxes are not the most exciting topic to learn about. However, if you can take a little bit of time to learn the rules, you could keep a lot more of your hard-earned money every single year.

Happy investing!

Questions? Comments? 

Join the discussion below. 

Amanda is a CPA specializing in tax strategies for real estate, self-directed investing, and individual tax planning with over 18 years’ experience. She is also a real estate investor of over 10 ye...
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    Edward Synicky
    Replied 6 months ago
    Amanda, Ca has allowed us to file by June 15th, 30 days earlier than the Feds. As CA requires us to attach a copy of our Federal return and that will not be completed for a month longer, should we just file Ca without the Federal return?
    Amanda Han Accountant from Fullerton, CA
    Replied 6 months ago
    Hi Edward CA has just updated the extension to 7/15 to follow federal :)
    John Barnes Flipper from Manassas, Virginia
    Replied 6 months ago
    Hi Amanda, does the July 15 date mean that we have until that date to fill 2019 IRA accounts?
    Amanda Han Accountant from Fullerton, CA
    Replied 6 months ago
    Hi John an update to my response it appears that the deadline for IRA contributions would automatically be delayed until 7/15 as well. Do double check with your custodian before you fund of course.
    Susan Maneck Investor from Jackson, Mississippi
    Replied 6 months ago
    Our legislature in Mississippi was suspended because of the virus. Will anyone even be able to extend the deadline?
    Amanda Han Accountant from Fullerton, CA
    Replied 6 months ago
    Good question. Checkout the AICPA state by state link references MA follows the Fed extension
    Jeff Summers Rental Property Investor from Tennessee
    Replied 6 months ago
    Hey John Barnes - we still have until October 15 to fund IRAs for 2019. Be sure to file an extension by July 15. Or you could file a final by 7/15 along with then IRA contribution. Hope that helps.
    Paul Knox
    Replied 6 months ago
    Thank you Amanda!!
    Amanda Han Accountant from Fullerton, CA
    Replied 6 months ago
    Thanks Paul~
    Jon N. from new york, ny
    Replied 6 months ago
    Hi Amanda, Are you taking on new clients at this time? If so please check your inbox With my contact info Thank you
    Rich Bultema from Crown Point, Indiana
    Replied 6 months ago
    Oh, I thought this was just payment deadline extension, but that filing was still due in April. What about Indiana and how does this relate to quarterly estimated taxes?
    Amanda Han Accountant from Fullerton, CA
    Replied 6 months ago
    Hi Rich yes filing and payments are both extended until 7/15. Checkout the AICPA link above for IN taxes. 2020 Q1 estimated taxes can also be delayed until 7/15.
    Amanda Han Accountant from Fullerton, CA
    Replied 6 months ago
    Hi everyone just an update to the above that the IRS has indicated 2020 Q2 estimated taxes due 6/15 are not extended and still due by 6/15.