The IRS released formal details concerning the delay in payments for tax year 2019 tax returns. Normally, balances owed on your 2019 tax return must be paid by April 15, 2020 to avoid late payment penalties and interest. The announcement pushed that deadline to July 15, 2020 with no late payment penalties or interest. Here’s what we know.
- Payment owed for 2019 tax returns originally due on April 15, 2020 has been extended to July 15, 2020. Late payment penalties and interest will not apply.
- You must either file or extend your 2019 tax return on or before April 15, 2020 in order to qualify for this.
- The first estimated tax payment for 2020 taxes due on April 15, 2020 has also been extended to July 15, 2020. The second installment of 2020 estimated payments due June 15, 2020 is apparently not impacted and is still due June 15th.
- We do not know whether states will follow suit although some states, such as California, have already delayed payments of some taxes. We under stand many states, including Colorado, will adopt the same policies.