Relief for Taxpayers Affected by Ongoing Coronavirus Pandemic
There has been much speculation surrounding the impact of the Coronavirus (COVID-19) pandemic on the upcoming tax filing deadline. At a March 17, 2020 White House briefing, Treasury Secretary Steven Mnuchin announced new relief measures that are effective immediately for federal tax returns.
The Internal Revenue Service (IRS) has extended the federal tax payment deadline from April 15, 2020 to July 15, 2020 for 2019 income taxes for individuals, which includes the income from pass-through entities (S-Corps, Partnerships, LLCs and Sole Proprietorships) that is reported on the individual’s personal tax return, who owe up to $1 million and C-corporations that owe up to $10 million. The payment extension is not available for the payment or deposit of any other type of federal tax.
Taxpayers do not need to file any additional forms or contact the IRS to qualify for the federal payment extension.
Eligible taxpayers can defer federal payment to July 15, 2020, without incurring further interest or penalties. The federal tax filing deadline remains April 15, 2020 for individuals and “C” corporations. The standard extension to October 15, 2020 for filing your 2019 tax return remains available to taxpayers. However, after July 15, 2020 interest and penalty will resume on any 2019 balance due. In addition, the 1st quarter’s 2020 federal estimated tax payment due April 15, 2020 is also deferred to July 15, 2020.
We remain on alert to any news about this situation. It is expected that many states will follow suit in granting similar payment relief. We will be sure to keep you apprised of any new updates at both the federal and state levels.
In the meantime, please do not hesitate to contact us with any questions you have regarding these circumstances.