IRS Extends Filing Deadline, Allows Unlimited Tax Deferral

The IRS and Treasury pushed the tax filing deadline to July 15, aligning the due date with the extended deadline for payments.

The guidance released Friday will give filers and advisers coping with the Covid-19 pandemic more time to prepare tax returns. It also permits unlimited tax payment deferral for individuals and businesses for those extra three months.

• The notice supersedes and expands upon earlier guidance that gave taxpayers extra time to pay their taxes but not to file.
• That guidance allowed Individuals to defer up to $1 million and corporations up to $10 million of tax payments without interest and penalties. The new guidance doesn’t contain a cap.
• The lack of a filing extension under the original notice drew backlash from tax preparers, trade groups, and lawmakers who said having two separate deadlines and rules for filing and paying taxes would likely confuse taxpayers.