‘All American citizens including those living and working in the UK have been given an extension from April until July to make their returns: said Adam Smith, a partner at leading accounting and tax advisory firm, Blick Rothenberg.
He added: ‘The effect of COVID-19 on day-to-day life had caused US taxpayers to become increasingly concerned in relation to their tax affairs.
‘Information required to complete 2019 tax returns was taking longer than usual and there have been concerns about cashflow required for the usual 15th April tax payments.
‘Either the cash was simply not available or fears that making large payments in April might endanger solvency in the coming uncertain months.
Adam said: ‘The Internal Revenue Service (IRS) has announced an extended due date on 15th July 2020 for filing 2019 Federal Income.
‘Tax returns and paying any tax due. The date for making the first quarter estimated tax payment for 2020 is also moved on 15th July 2020
He added: ‘However, it is important to note the following exceptions:
- There is currently no extension of time for filing any Federal information returns with an 15th April due date.
- For a taxpayer with an instalment of the 2017 one off ‘repatriation tax’ falling due on 15th April 2020; there is no extended payment date for that amount.
- The filing date for reports of Foreign Bank and Financial Accounts (FBAR) is not within the remit of the IRS and thus not impacted by the IRS Notice.
- A non-resident alien submitting US Federal Income Tax Returns on Form 1040-NR, such as a UK national with income arising from a source in the USA may not be covered by the 15th July extensions.
- The IRS Notice only impacts those 2019 tax returns and 2020 estimated payments for which the statutory due date is 15th April, so an extension may still need to be filed.
Adam asserted that: ‘This is an important extension that gives both US taxpayers and their advisors additional time to prepare and file tax returns, that would ordinarily be due on 15th April.
‘The additional time to pay taxes due will be welcome relief to Americans residing all over the world.’
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