Special IRS Update

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Tax filing and payments affected by COVID-19

Here is what we know so far. Treasury Secretary Mnuchin announced on Tuesday that taxpayers will receive an extension of 90 days until July 15, 2020 to file and pay their 2019 taxes. This deferral of time only applies to taxes owed of up to 1 million dollars for individuals and 10 million dollars for corporations. There is no form to file to receive this extension. During this time, the IRS will not charge interest or penalties. Extensions can still be filed for the automatic 6 months until October 15, as has been the case in the past.

There has been no confirmation that the due date of 2020 estimated tax payments of April 15 and June 15 has been extended. This would mean that the estimated taxes would be due as usual, though the 2019 tax return and payment would be extended.

Also, and more importantly, state taxing authorities have not automatically adopted this filing extension. Some states are still requiring the April 15 deadline.

For state tax information related to the Coronavirus, see the American Institute of CPA’s website: https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf