The Treasury Department and the Internal Revenue Service recently announced special federal income tax return filing and payment relief in response to the ongoing Coronavirus (COVID-19) emergency.
As a result, a variety of tax-filing and payment deadlines falling on or after April 1, 2020, and before July 15, 2020, are postponed until July 15, 2020. This means that federal tax payments can be deferred to July 15 without penalties and interest, regardless of the amount owed.
This deferment applies to all taxpayers, including individuals, trusts, estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
Filing and paying federal taxes due July 15
Taxpayers who can't pay the full amount owed by July 15 may qualify for a payment plan or can apply for an offer in compromise. Penalties and interest will begin to accrue on unpaid tax liability beginning July 16.
Scheduling or rescheduling a payment
For taxpayers looking to reschedule or schedule their federal tax payments, the IRS offers two payment options where payments can be scheduled up to 365 days in advance. These two options are optimal for those who canceled their payments that were due April 15 and want to reschedule their payment to the July 15 due date. They are:
Electronic Federal Tax Payments System (EFTPS) is free and taxpayers can schedule their estimated and other federal tax payments up to 365 days in advance. New enrollments for EFTPS can take up to five business days to process.
Debit, credit card or digital wallet is through a payment processor up to 365 days in advance. The payment processors charge a fee, no fees go to the IRS.
Additional electronic payment options
Additional payment options and explanations on how to cancel payments already scheduled are available on IRS.gov/payments.
Bank Account (Direct Pay) - Taxpayers can pay for free with their bank account using Direct Pay where they can schedule a payment up to 30 days in advance, and payments for the July 15 due date can be scheduled beginning June 15.
Paying when filing electronically
Taxpayers who filed electronically and scheduled their payment with an Electronic Funds Withdrawal, and want to reschedule their payment to the July 15 due date, can call the e-file Payment Services automated line at 888-353-4537 to cancel their payment no later than 11:59 p.m. Eastern time two business days prior to the scheduled payment date. EFW payments cannot be resubmitted. Taxpayers should select a different electronic payment option to reschedule the payments.
Need more time to file?
Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension two ways:
Filing Form 4868 through their tax professional, tax software, or using the Free File link on IRS.gov.
Submitting an electronic payment with Direct Pay, Electronic Federal Tax Payment System, or by debit, credit card or digital wallet options and selecting Form 4868 or extension as the payment type. The automatic extension of time to file will process when they pay all or part of their taxes electronically by the July 15 due date. An extension to file is not an extension to pay. Taxes are still due by the July 15 due date.
Estimated tax payments for tax year 2020, due April 15 and June 15, are now due July 15. IRS Form 1040-ES, Estimated Tax for Individuals, includes instructions to help taxpayers figure their estimated taxes. They can also visit IRS.gov/payments to pay electronically. IRS offers two free electronic payment options where taxpayers can schedule their estimated federal tax payments up to 30 days in advance, with Direct Pay or up to 365 days in advance, with the Electronic Federal Tax Payment System (EFTPS).
For more information about paying taxes due July 15, see frequently asked questions available on IRS.gov.