Updated: April 14, 2020
Federal and State Income Tax Filing and Payment Extensions Affecting Individuals In Response to COVID-19 Crisis
Federal, state, and local governments have extended income tax filing and payment deadlines in response to the COVID-19 crisis. The extensions which affect individuals (including entities from which individuals may receive distributions or Forms K-1) are summarized below. This summary does not include provisions applicable to employers.
Federal Guidance. The IRS has extended the due date for filing of federal income tax returns and payments of tax due to be performed (originally or pursuant to a valid extension) on or after April 15, 2020, and before July 15, 2020. The due date, as extended, is now July 15, 2020, and includes the following:
- Individual income tax return filings and payments on Form 1040;
- Trusts and estates income tax return filings and payments on Form 1041;
- Calendar year and fiscal year C corporations income tax return filings and payments on Form 1120;
- Calendar years and fiscal year S corporations income tax return filings and payments on Form 1120-S;
- Calendar year and fiscal year partnerships return filings on Form 1065;
- Exempt organizations return filings and payment on filings on Form 990-T;
- Exempt organizations return filing and excise tax payments on Form 990-PF;
- Quarterly estimated income tax payments (1st and 2nd quarter 2020) for individuals, estates, trusts, and corporations.
For self-employed taxpayers, there is an extension with respect to that portion of estimated tax payments attributable to a percentage of self-employment taxes. For self-employment income earned from March 27, 2020 to December 31, 2020, one-half of the social security portion (6.2%) of the self-employment tax (the “Deferral Amount”), normally included in estimated tax payments, is deferred as follows:
- 50% of the Deferral Amount is due on December 31, 2021; and
- 50% of the Deferral Amount is due on December 31, 2022.
With respect to IRAs, HSAs, MSAs, and workplace-based plans, the following guidance was issued:
- IRA contributions for 2019 can be made through July 15, 2020;
- Payment of the 10% additional tax on a 2019 IRA distribution has been extended to July 15, 2020;
- Elective excess deferrals to an employer-sponsored plan must still be removed by April 15, 2020;
- If an employer has a federal income tax return due on April 15, 2020, the grace period for employer contributions to qualified plans for 2019 has been extended to July 15, 2020; and
- Taxpayer contributions to a health savings account or medical savings account have been extended to July 15, 2020.
State and Local Guidance. Summarized below is guidance from states/localities that impose an income tax, and in which Spencer Fane has offices:
- Arizona. Following the federal guidance, Arizona extended the filing and payment deadlines for individual, corporate, and fiduciary income taxes otherwise due on April 15, 2020, to July 15, 2020. Estimated tax payments for the 1st quarter 2020 are still due on April 15, 2020.
- Colorado. Income tax returns required to be filed by April 15, 2020, for all Colorado taxpayers, are extended to October 15, 2020. Income tax payments otherwise due on April 15, 2020, for all individuals and businesses who pay income tax in Colorado, are extended to July 15, 2020. Estimated tax payments for the 1st and 2nd quarter 2020 which are due on and after April 15, 2020, but on or before June 15, 2020, can be paid any time on or before July 15, 2020 without penalty.
- Kansas. Calendar year tax returns (2019) and payments thereon otherwise due on April 15, 2020, for individual income tax, corporate income tax, fiduciary income tax, and privilege tax, have been extended to July 15, 2020. Fiscal year tax returns and payments thereon due between April 15, 2020 and July 15, 2020, for fiduciary income tax, corporate income tax, and privilege tax are extended to July 15, 2020. The filing date for homestead and property tax relief refund claims is extended to October 15, 2020. First quarter estimated tax payments for 2020 which are due on April 15, 2020, have now been extended until July 15, 2020.
- Minnesota. Individual income tax returns for 2019 and payments thereon are extended to July 15, 2020. The extension includes estimated tax payments for individual income taxes due for the 2019 tax year. Estimated tax payments for individual income tax for the 2020 tax year, due April 15, 2020, are not extended. Partnerships, fiduciaries, and S corporations receive an automatic extension of time to file in accordance with the federal extension, however, the due date for income tax payments for such entities has not changed.
- Missouri. Income tax returns with a due date of April 15, 2020 are extended to July 15, 2020. Income tax payments originally due on April 15, 2020, for individuals, C corporations, trusts and estates are extended to July 15, 2020. Individual and corporate estimated tax payments for tax year 2020 that are originally due on April 15, 2020 and June 15, 2020, are also extended to July 15, 2020.
- City of Kansas City. The City of Kansas City earnings and profits tax filing and payment deadline has been extended to July 15, 2020.
- City of St. Louis. The City of St. Louis earnings tax filing and payment deadline has been extended to July 15, 2020.
- Nebraska. State income tax returns with an original due date of April 15, 2020, and payments thereon for individual taxpayers, business taxpayers on a calendar year, and fiscal year taxpayers (if their tax year end is January 31, 2020 and their filing date or due date is on April 15, 2020), are extended to July 15, 2020. Estimated tax payments originally due on April 15, 2020, are extended to July 15, 2020.
- Oklahoma. Income tax returns (presumably includes not only individual returns but also corporation, trust and estate returns) and payments thereon, and estimated payments, otherwise due on April 15, 2020, are extended to July 15, 2020.
Florida, South Dakota, Nevada, and Texas do not impose a state income tax.
For states or localities not listed above, please contact Dave Zimmerman or Kim Bushek for assistance.
