United States – COVID-19 Emergency Has Treasury Considering Tax Return Filing Delay
United States – COVID-19 Emergency Has Treasury Conside
Some recent media reports and informal statements from U.S. government officials suggest that the U.S. Treasury Department may be planning to extend the federal income tax filing and payment deadline for the 2019 tax year in response to the novel coronavirus (COVID-19). There has been no official guidance issued at the date of this newsletter’s publication.
Various reports in the press as well as informal statements from U.S. government officials have indicated that the U.S. Treasury Department is currently considering extending the income tax filing and payment deadline for the 2019 tax year in response to the novel coronavirus (COVID-19). While discussions are currently ongoing, no official guidance has been issued yet.
KPMG LLP (U.S.) is closely monitoring the situation and will issue another GMS Flash Alert if there are any updates or official announcements.
WHY THIS MATTERS
In general, individual taxpayers are required to file their income tax returns and pay any outstanding tax liability by the fifteenth day of the fourth month following the close of their taxable year, which is usually April 15th for calendar year taxpayers.1 While taxpayers who timely file Form 4868 are allowed a six-month extension to file their income tax returns, the extension does not extend the time taxpayers have to pay the outstanding tax liability on their income tax returns.2 As such, penalties and interest generally accrue on any outstanding tax liability that is not paid by the original filing deadline, which is usually April 15th.3
Extending the payment deadline would provide relief to taxpayers who are unable to pay their outstanding tax liability by April 15th.
FOOTNOTES
1 I.R.C. § 6072(a); I.R.C. § 6072(c). The filing due date for nonresident aliens who do not earn wages subject to income tax withholding in the United States is June 15th.
2 Treas. Reg. § 1.6081-4(a); Treas. Reg. § 1.6081-4(b); Treas. Reg. § 1.6081-5(b); Treas. Reg. § 1.6161-1(d). U.S. citizens and residents who reside abroad on the original filing deadline are automatically granted a two-month extension to file their tax returns and pay the tax shown on their returns. However, interest still accrues on any tax that is not paid by the original filing deadline.
3 I.R.C. § 6651(a)(2).
RELATED LINKS
The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained in this newsletter was submitted by the KPMG International member firm in United States.
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