Important news regarding tax payments and filing
Federal Tax Information
As COVID-19 continues to impact the United States, the federal government is taking action to ease the burden on taxpayers. Most recently, the Internal Revenue Service (IRS) has announced that the due date for making tax payments has been pushed to July 15, 2020.
When is the tax filing deadline for individual federal income tax returns? On March 20, 2020, Treasury Secretary Mnuchin announced that the tax filing deadline has been extended to July 15, 2020.
What if I am expecting a refund? Refunds are not affected. The IRS urges taxpayers who are owed a refund to file as quickly as possible.
When is my tax payment due? Income tax payment deadlines for individual returns are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns.
What about self-employment tax? The relief applies to self-employed individuals.
What about estimated tax payments? The relief also includes estimated tax payments for the tax year 2020 that are due on April 15, 2020. Please note that there is a second estimated tax payment due during the deferral – the one due June 15, 2020 – but the IRS has not indicated that amount is eligible for deferral. The Notice and subsequent guidance specifically reference estimated payments “that are due on April 15, 2020.”
So how does this work? If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15, 2020. Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020.
Do I have to do anything to qualify for the relief? No, IRS will automatically provide the relief. You don’t need to file any additional forms or call the IRS to be eligible.
What about state tax or other federal tax payments? The relief outlined in the Notice only applies to federal income tax payments which would have been due on April 15, 2020. It does not apply to state tax payments or deposits or payments of any other type of federal tax, like excise taxes.
Where can I find this in writing from the IRS? You can read the official IRS guidance here (downloads as a PDF).
State of Michigan Tax Information
The Michigan Department of Treasury is waiving penalty and interest for the late payment of tax or the late filing of the return due on March 20, 2020. The waiver will be effective for a period of 30 days; therefore, any return or payment currently due on March 20, 2020 may be submitted to the Department without penalty or interest through April 20, 2020. The waiver is limited to sales, use, and withholding payments and returns due March 20, 2020. Questions may be directed to the Department at (517) 636–6925.
Read the official Michigan guidance here
248-435-5299
ddadirector@cityofclawson.com
