The IRS extended more tax deadlines to cover individuals, trusts, estates, corporations, and more, including deadline extensions for both 1031 like-kind exchanges and opportunity zone investments. Both programs are to help spur economic growth in communities. The National Association of REALTORS® advocated for both extensions.
Last month, the IRS had announced that taxpayers have until July 15 to file and pay 2019 federal income taxes. The original deadline was April 15.
On Thursday, the IRS said it expanded that relief to additional returns and tax payments. Individuals, trusts, estates, corporations, and other noncorporate tax filers now have until July 15 to file their 2019 federal income tax returns and to pay any tax due.
One of the deadlines under the opportunity zone program has been extended. If an investor who sold a capital asset planned to roll over the gain into an opportunity fund, they may be able to extend the previous 180-day deadline if it fell between April 1 and July 15. Investors in those cases can make the investment on July 15, the IRS states.
Also, investors who were doing 1031 like-kind exchanges and had already taken the first step by selling the old property also received an extension to meet the requirements. If the 45-day or the 180-day deadline fell between April 1 and July 15, the deadline has been extended to July 15.
Further, sole proprietors who pay quarterly estimated taxes can postpone their second quarter payment from June 15 to July 15. The first quarter’s estimated tax payments had already been extended to July 15. Now, both payments are due at the same time, without penalty, the IRS said.
“During recent weeks, NAR strongly advocated for tax payment deadline extensions, including for 1031 like-kind exchanges and opportunity zone investments, as this pandemic left small businesses and independent contractors particularly vulnerable,” said Vince Malta, NAR's president. “I want to commend the IRS for moving quickly to protect countless American workers and consumers.”
Visit IRS.gov for more information on the changes. The latest guidance was issued under Notice 2020-23.
Source: IRS.gov
