Important Tax Update – COVID-19

On Tuesday, March 17, 2020, the United States Department of Treasury and the Internal Revenue Service announced that they will be providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. It is important to note that the filing deadline for tax returns remains April 15, 2020 and has not been automatically extended. For those that need additional time to file, we will request a six-month filing extension to file tax returns by October 15, 2020.

Tax payment relief includes:

Individuals:  Income tax payment deadlines for individual returns are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. The IRS will automatically provide this relief to taxpayers.

Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.

Penalties and interest on unpaid balances will begin to accrue as of July 16, 2020. However, underpayment penalties may still apply, as the International Revenue Service has not indicated any relief on this type of penalty.

For individuals and corporations, the IRS is also providing relief on estimated tax payments for tax year 2020 that are normally due April 15, 2020. Estimated first-quarter payments are extended to July 15, 2020.

Keep in mind that state filing and payment deadlines vary and are not always the same as the federal filing deadline. Please contact us for specific state questions.

These are uncertain times and information is changing daily, we will continue to monitor the information that is released and provide updates. Do not hesitate to reach out to anyone in our team if you have any questions.

Stay Safe!

©2020

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