March 17, 2020
April 15th Tax Filing Deadline Update
April 15th Tax Filing Deadline...What is the Status?
As you may have heard, in light of the state-by-state shutdowns surrounding the coronavirus (COVID-19), Treasury Secretary Steven Mnuchin announced that the Treasury Department is working with the Trump administration to delay the April 15
tax filing deadline, including the payment of taxes.
We have always had the ability to extend your tax filing, but not the payment of tax. During President Trump’s press conference this afternoon, the Treasury Secretary stated that President Donald Trump has authorized the deferral of $300 billion in payments to the IRS. Mnuchin said if individuals owe a payment, they can defer up to $1 million, and corporations may defer $10 million. The deferrals will be penalty-free for 90 days (July 15
We are still waiting on additional guidance on a few items. On the Federal side, we are waiting to see whether additional forms will need to be filed to be granted this extension of time to pay and we are waiting for guidance on how first quarter 2020 estimated tax payments play into this. On the state side, we need to see if the states decide to follow the Federal government in the deferral of income tax payments in general.
Since we are still waiting on additional guidance for various items, and even though we are working remotely, we are operating under the "status quo" to make sure that you are in compliance and we will still be reaching out to obtain any missing tax data to continue processing your various returns. We will be filing protective extensions for all clients electronically – there is nothing to do on your part at this time. We will keep you updated on any changes as they occur.
While we realize this might be the last thing on your minds, it is our job is to keep you protected, especially during unprecedented times like these. If an extension is granted, for filing and payment, we will notify you as soon as possible with our plan for continuing with tax work for the 2019 tax season.
Stay safe, stay healthy!