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New Tax Deadline for Partnership and Corporation

Do you run a partnership or corporation and need more time to file your U.S. tax return? If so, there is some relief in sight for you. To add on to Notice 2020-23, granting additional time to individual taxpayers to file their tax returns and pay any tax owed, the IRS has now extended tax deadlines for partnerships and corporations, among other entities.

Last month, the IRS announced that individual taxpayers have until July 15, 2020 to file and pay federal income taxes that were originally due on April 15, 2020. As a result, no failure-to-file or failure-to-pay penalties will be assessed if taxpayers file by July 15. Nor will an interest accrue on tax owed if the returns are filed by the new extended due date of July 15.

In addition to this, the IRS has now announced that trusts, estates, partnerships, and corporations also qualify for this extended due date of July 15, 2020. This includes, of course, Americans living overseas who traditionally had until June 15 to file their taxes.

If you feel you need additional time to file your tax returns, individuals can file Form 4868 to extend the due date until October 15, 2020. Businesses that need additional time can file Form 7004 to get an extension to file. However, please note that any tax owed will still have to be paid by July 15 in order to avoid the failure-to-pay penalty and interest.

Finally, if you have not yet made your second quarter estimated tax payment, you now have until July 15 to make that payment. What this means is that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment.