Feds, States, D.C. Authorize Tax Filing, Payment Extensions

COVID-19 has upended almost every facet of daily life that had been predictable, and that includes the usual mid-April deadline to file federal tax returns. The Internal Revenue Service announced in late March that they would push the usual Tax Day back three months to July 15. This covers both the deadlines to file individual taxes and to pay outstanding balances to the federal government.

WANADA encourages those who are able to file and make payments on the regular schedule to continue doing so.

For those who are eligible to receive the Economic Impact Payments authorized by the CARES Act, the IRS will use 2019 tax filings for those who submitted their federal income tax returns before March 30; those who have not filed yet will receive a benefit based on their 2018 return. For those who have not filed taxes for either year, the IRS will continue accepting returns from both of those years in order to calculate and disburse their direct benefit, which can be as much as $1,200 for filers who earned $75,000 or less in the most recent year for which records are available.

Last week, D.C. Mayor Muriel Bowser announced that the District would also extend their deadline to file individual, partnership, and franchise tax returns to July 15. This extension also covers any outstanding payments from 2019 that would normally have been due April 15.

Maryland Comptroller Peter Franchot has published a helpful chart of the various due dates for 2019 tax filings and payments in the state. Business tax returns, and payments that had not been collected in the months of March, April, and May are due on June 1, while individual tax returns and payments are due to the state on July 15.

In Virginia, state income tax filings are due on May 1, but according to the state department of taxation, any outstanding payments due can be paid as late as June 1 without any penalties. This covers all due taxes that would otherwise have been due to the commonwealth between April 1 and June 1, according to a memo issued by the department in late March. Virginia will also allow tax filers to apply for a 6-month extension, though they must do so before May 1 to avoid exposure to penalties.

Please note that while late payment penalties will not be applied to any tax bills that fit this criteria, interest will continue to accrue during this period, so if you are able to pay any outstanding tax liabilities, please do so as soon as possible.

Download Bulletin PDF