Updated: U.S. Treasury Delays April 15th Tax Payment Deadline
On Wednesday, March 18, 2020, the IRS released further guidance on the Treasury’s announcement that it would delay the April 15th tax payment deadline by 90 days. This communication is intended to provide an update to our original March 18, 2020 communication on this matter.
- The IRS will suspend penalties and interest for up to 90 days for payments related to tax returns submitted by the April 15th filing deadline, giving many individuals and businesses another 90 days – until July 15th – to pay their 2019 income tax bills.
- The payment delay will apply to payments as high as $1 million for individuals (intended to cover small businesses and pass-through entities) and $10 million for corporations.
- At this time, the IRS is not extending the tax filing deadline, so for those taxpayers who don’t file their returns (or an extension) by April 15th, there may still be exposure to penalties and interest.
- For those expecting a tax refund, returns should be filed as soon as possible in order to receive those refunds.
- Deferment is just a postponement and thus tax payments must still be paid when the deferment period is up.
- The postponement applies to Federal tax returns. While most states follow Federal due dates, many state’s responses are still being formulated. A growing list of state tax filing guidance in the wake of COVID-19 can be found on the AICPA’s website.
If further changes of a substantive nature occur, we will keep you informed. If you have questions about how this deferment may affect you or your business, please contact a member of the MFA Tax Team.
Material discussed in this communication is meant to provide general information and should not be acted on without obtaining professional advice tailored to you or your company’s individual and specific needs. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used by any person or entity, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This information is for general guidance only and is not a substitute for professional advice.
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