Jump directly to the content

July 15, 2020

  • In the past, ministers (who have not elected voluntary withholding) and self-employed workers filed their second quarterly estimated federal tax payment by June 15. A similar rule applied in many states to payments of estimated state taxes.

    In March of 2020 the IRS announced that taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. IR-2020-58. A few weeks later, in Notice 2020-23, the IRS expanded this relief to additional returns, tax payments and other actions. As a result, the extension now applies to all taxpayers who have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. This includes quarterly estimated tax payments (Form 1040-ES) that would have been due before July 15, 2020, including the first two estimated tax payments due on April 15 and June 15 of 2020. This means that any individual who has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.

    For additional information on filing, including a chart with revised due dates for quarterly tax payment deadlines, see the “Income tax-filing” section in “What We Know: Tax Payments and Filings for Churches and Individuals.”
  • A church must make quarterly estimated tax payments if it expects an unrelated business income tax liability for the year to be $500 or more. Use IRS Form 990-W to figure your estimated taxes. In the past, quarterly estimated tax payments of one-fourth of the total tax liability were due by April 15, June 15, September 15, and December 15 for churches on a calendar-year basis. In Notice 2020-23, the IRS extended the first two quarterly filing deadlines for 2020 until July 15.

Note: If a date listed for filing a return or making a tax payment falls on a Saturday, Sunday, or legal holiday (either national or statewide in a state where the return is required to be filed), the return or tax payment is due on the following business day.

Note: You must use electronic funds transfer to make all federal employment tax deposits. This is generally done using the Electronic Federal Tax Payment System, a free service provided by the U.S. Department of Treasury. If you don't wish to use EFTPS, you can arrange for your tax professional, financial institution, or payroll service to make deposits on your behalf. Failure to make a timely deposit may subject you to a 10-percent penalty.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

Related Topics:
Posted:
  • June 11, 2020

Related ResourcesVisit Store

2021 Church & Clergy Tax Guide (PDF)
2021 Church & Clergy Tax Guide (PDF)
The most comprehensive and authoritative tax guide available.
2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
50-State Public Accommodations Laws Report
50-State Public Accommodations Laws Report
How statutes and court decisions across the country do - or don't affect churches
2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.