AgChoice Farm Credit

On March 18, 2020, and March 20, 2020, the Department of Treasury and the IRS issued Notices 2020-17 and 2020-18 effectively postponing the due date for both filing Federal income tax returns and making tax payments (associated with that filing) from April 15, 2020, until July 15, 2020.

This is automatic, and there is no need to file an extension if you file by July 15, 2020.

In response to questions about the deadlines, we're sharing clarifying facts from the IRS and state of Pennsylvania.

This relief applies only to federal income taxes and payments due on April 15, 2020, unless where noted.

The relief does not apply to required installments of estimated tax during 2019 for the 2019 tax year – if you have a balance due and pay after April 15, 2020, and you did not make the required estimated payments, you will be subject to underpayment of estimated tax penalties and interest up to the date of payment. This will be the same for estimates paid to Pennsylvania.

This relief applies to first quarter estimated tax payments – due date is now July 15, 2020.

This relief does not apply to second quarter federal estimated tax payments – those are still due June 15, 2020.

The Commonwealth of Pennsylvania and most local tax authorities in Pennsylvania are providing the same relief. Check with your specific local tax authority to be sure.

Pennsylvania has allowed the second quarter estimated tax payments to be extended to July 15, 2020 (different from Federal).

The deadline for making IRA contributions for 2019 is also extended to July 15, 2020.

The deadline for making contributions to HSA and Archer MSAs is also extended.

If you are unable to file your 2019 individual tax return by July 15, 2020, you can request an automatic extension by July 15, 2020. This will provide an extension to the due date Oct. 15, 2020. To avoid interest and penalties, pay the tax you expect to owe by July 15, 2020, with the extension filing. The extension provides additional time to file, not additional time to pay.

For additional information on the tax deadline changes, contact your local tax professional.

Sources: IRS.gov and PA.gov.

About AgChoice Farm Credit

AgChoice Farm Credit specializes in providing farm and country property loans and financial services to help our Martinsburg customers confidently reach their dreams.

Editor's Note: The Herald is partnering with AgChoice Farm Credit to provide information about financing and loans in rural areas such as the Cove.

Reader comments and suggestions regarding this column and its topics are welcome. Send comments to publisher@mcheraldonline.com or call (814) 793-2144.