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Certain New Jersey and Federal Tax Deadlines Extended to July 15, 2020 in Response to COVID-19 Outbreak

By: Joseph M. Lemond, Esq. and Thomas R. Szieber, Esq.

The Internal Revenue Service (IRS) and State of New Jersey have recognized that the ongoing COVID-19 emergency has overwhelmed all Americans.  As a result, both have extended various deadlines to benefit taxpayers.

With respect to taxpayers—that is, any individual, trust, estate, partnership, association, company, or corporation—the IRS has extended to July 15, 2020, the deadline for any tax payment due or form required to be filed on or after April 1, 2020 and before July 15, 2020.  Among the payments and filing obligations for which deadlines have been extended are individual income tax payments and returns (Form 1040), calendar year or fiscal year corporate income tax payments and returns (Form 1120), calendar year or fiscal year partnership returns (Form 1065), estate and trust income tax payments and returns (Form 1041), estate and generation-skipping transfer tax payments and returns (Form 706), gift and generation-skipping transfer tax payments and returns (Form 709), and estimated tax payments.  The period of April 1, 2020 to July 15, 2020 will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file or make payments. Interest, penalties, and additions to tax will begin to accrue on July 16, 2020.

Any taxpayer who needs additional time to file beyond July 15, 2020 may choose to file the appropriate extension form by July 15, 2020, but the extension date may not go beyond the original statutory or regulatory extension date.  Further, the extensions will not extend the time to pay federal income tax beyond July 15, 2020. 

Additionally, the deadline for 2019 contributions to an Individual Retirement Account (IRA), Health Savings Account (HSA), or Archer Medical Savings Account (MSA) has also been extended to July 15, 2020. 

The State of New Jersey has followed suit, extending its deadline for the filing of state individual and corporate business tax returns and the payment of tax due to July 15, 2020, as well.

Taxpayers also have until July 15, 2020 to perform specified time-sensitive actions including the filing of petitions with, or for review of a decision by, the United States Tax Court, filing a claim for credit or refund of any tax, and bringing suit upon a claim for credit or refund of any tax.