Certain New Jersey and Federal Income Tax Deadlines Extended to July 15, 2020 in Response to COVID-19 Outbreak
By: Joseph M. Lemond, Esq. and Thomas R. Szieber, Esq.
No matter who you are, it is likely you are being affected by the ongoing COVID-19 emergency that has overwhelmed our country. The federal government has recognized that fact, and has offered a bit of relief to all Americans by extending the due date for federal income and certain other tax returns and tax payments from April 15, 2020 to July 15, 2020.
This extension applies to any affected taxpayer—that is, any individual, trust, estate, partnership, association, company, or corporation. The affected taxpayer need not be sick or quarantined to take advantage of this relief. No Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) nor Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns) need be filed, nor is there any limit on the amount of payment that may be postponed. Thus, the period of April 15, 2020 to July 15, 2020 will be disregarded in the calculation of interest, penalties, or addition to tax.
This relief includes federal income tax returns, federal gift tax returns (Form 709) and federal income, gift and generation skipping transfer tax payments due on April 15, 2020 for the 2019 taxable year, and federal estimated income tax payments due on April 15, 2020 for the 2020 taxable year. Additionally, the deadline for 2019 contributions to an Individual Retirement Account (IRA), Health Savings Account (HAS), or Archer Medical Savings Account (MSA) has also been extended to July 15, 2020. The extension does not apply to 2020 estimated tax payments due on June 15, 2020 and the federal estate tax return (Form 706). The June 15, 2020 estimated tax payment deadline could be problematic in that an individual’s 2020 estimated tax payments would typically be determined by preparing a 2019 federal income tax return. As such, an individual’s federal income tax return will need to be prepared before June 15, 2020 in order to avoid a late second quarter estimated tax payment.
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.