On March 18, 2020, the federal government made an announcement to postpone the due date of certain 2019 tax filings as part of their COVID-19 economic response plan.
Tax filing deadlines for federal returns:
|Category||Normal due date||Extended due date|
|Trusts||March 30, 2020||May 1, 2020|
|Individuals||April 30, 2020||June 1, 2020|
|Individuals (self-employed or spouse of self-employed)||June 15, 2020||June 15, 2020 (no change)|
|Corporations||Six months from year-end date||Six months after end of taxation year (no change)|
There are various other federally required returns and forms with specific due dates that have currently not been extended; such as: T5013 Partnership information return, GST34 GST/HST return, etc. If you have a return or form that is filed late and the due date has not been extended under the COVID-19 economic response plan, penalties may still apply.
All taxpayers (individuals, trusts and corporations) will be able to defer the payment of any income tax amounts that become due on or after March 18, 2020 and before September 1, 2020. This relief would apply to tax balances due as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. This relief from interest or penalties does not currently apply to tax balances or installments, such as: GST or HST balance or installments, payroll deductions, Part IV tax, etc.
For situations not covered under the COVID-19 economic response plan where interest and penalties are assessed, you can complete form RC4288 “Request for Taxpayer Relief – cancel or Waive Penalties or Interest”.
Another important measure announced today relates to the ability to electronically sign CRA required e-file authorization forms. In order to reduce the necessity for taxpayers and tax preparers to meet in person during this difficult time, and to reduce administrative burden, effective immediately the Canada Revenue Agency will recognize electronic signatures. This will be a temporary administrative measure to allow the authorization forms T183 or T183CORP to be signed electronically. This will allow taxpayers the ability to authorize the filing of a tax return without the need to physically sign the authorization form.
Tax deadlines in the U.S.:
Note the deadline extensions are for payments, not filing tax returns. The filing deadline remains April 15, 2020. Non-residents of the U.S. have until June 15 to file, October 15, if an extension request is filed.
Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.
Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.
This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.
This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. If you file in a state, similar relief may be available. Check with your state tax agency for details.