Treasury, IRS Announce July 15 Tax Deadline to Remain with Automatic Filing Extension Available

June 30, 2020

The Treasury Department and IRS recently announced the tax filing and payment deadline of July 15 will not be postponed, but individual taxpayers unable to meet the due date can request an automatic extension of time to file until Oct. 15.

Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic Oct. 15 filing extension and include their estimated tax liability. The extension provides additional time to file but is not an extension to pay any taxes due.

Taxpayers can also get an extension by paying all or part of their tax due and indicate that the payment is for an extension. When getting an extension by making a payment, taxpayers do not have to file a separate extension form and will receive a confirmation number for their records.

For those affected by COVID-19 and other hardships who cannot pay in full, the IRS has several options available to help. Several payment options are available on IRS.gov/payments and some can offer smaller penalties. The IRS urges people who owe taxes, even if they have a filing extension, to pay what they can by July 15 to avoid penalties and interest.

Though interest and penalties continue to accrue on any unpaid taxes after July 15, the failure to pay tax penalty rate is cut in half while an installment agreement is in effect. Also, the usual penalty rate of 0.5 percent per month is reduced to 0.25 percent. For the calendar quarter beginning July 1, 2020, the interest rate for underpayment is 3 percent.