On March 17, the U.S. Treasury Secretary announced a 90-day tax payment extension that will affect most business and individual taxpayers. However, industry pressure from the AICPA and other national accounting associations were not able to effect a filing extension for the April 15 deadline. Individuals who owe less than $1 million will be allowed to delay paying their federal tax bills until July 15, 2020. During the same period, corporations can defer payments on taxes due up to $10 million.
The Internal Revenue Service has issued Notice 2020-17 titled “Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic.â€
This grace period will allow taxpayers and businesses to quickly secure an electronic extension, if they have not already filed. In the case of an extension, the tax preparation process still requires calculating the amount owed; this directive will not affect that part of the process.
REDW tax professionals are closely monitoring this and many other updates relating to the COVID-19 crisis. For additional information or seek assistance, please contact Tax Principal Christina Roderick at croderick@redw.com or Mike Chelius at mchelius@redw.com.
States Offer Tax Filing and Payment Relief of Their Own
A few states have responded to COVID-19 by pushing deadlines for tax returns. Click here to download a state-by-state update of extensions, tax filing and payment deadlines, offered by the AICPA.
REDW will be closely monitoring this situation as it continues to unfold, so we can help our clients avoid mistakes. Please contact Principal James Ortiz, Practice Leader for our State and Local Tax (SALT) practice, at jortiz@redw.com for assistance.
REDW is committed to keeping you informed at all times, but especially during a crisis of the magnitude of the COVID-19 pandemic. Stay connected with us on LinkedIn and @REDWLLC. Or check out some of our other updates here.
