March 20th, 2020

IRS and Maryland Extend Tax Filing and Payment Deadlines

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Author: David S. De Jong

IRS Building

In light of difficulties resulting from the coronavirus, IRS has extended the tax filing deadline and the payment deadline from April 15, 2020 to July 15, 2020. and fiduciary income tax returns as well as to gift tax returns otherwise due on April 15. No extension form 4868 or 7004 needs to be filed. Penalty and interest will not apply during this added 3-month period.

The deadline for making 2019 IRA contributions is now July 15, 2020 which cannot be extended. Without need of an extension, calendar year C corporations as well can make their 2019 retirement plan contributions up to that date.

The extension also applies to first quarter estimates, which will also be due on July 15, 2020, a month after second quarter estimates.

The extension covers Section 965 installment payments (applicable to taxpayers owning stock in certain foreign corporations) which are typically due on April 15; this payment deadline has been extended to July 15.

No relief has been announced for employment and unemployment tax returns due on April 30, 2020 or for fiscal year income tax returns due on May 31 or June 30, 2020.

The extension does NOT extend the due dates for certain information returns, including, most notably, Form 3520 (Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts); the filing deadline for these information returns remains April 15 for most individuals. Individual taxpayers can obtain a six-month extension for Forms 3520 by filing, by April 15, a Form 4868 by April 15.

Maryland has granted similar extensions to July 15, 2020 but they are also applicable to January 31, February 28 and March 31 year-ends.

Additionally, Maryland has extended February, March and April payment dates for sales and use tax, withholding tax and admissions and amusement tax until June 1, 2020.

The Maryland State Department of Assessments and Taxation (SDAT) has also extended the due date of the Annual Registration and Personal Property Tax Return for all businesses from April 15 to July 15, 2020.

Virginia has extended the income tax payment (not filing) deadline until June 1, 2020 for payments due in April and May. The extension applies to penalty avoidance but interest continues to run. Failure to pay by June 1 causes the penalty to revert to the original due date.

The District of Columbia has extended the April 15, 2020 filing and payment dates for all individual, business and fiduciary (estate and trust) returns to July 15, 2020.

More on issues affecting businesses and individuals in our COVID-19 Resource Center.