In response to the coronavirus pandemic, Treasury Secretary Steven Mnuchin announced on Tuesday, March 17, that taxpayers will be granted an additional 90 days to pay taxes owed, without any interest or penalties. Individuals can defer up to $1 million dollars of tax liability and corporations up to $10 million in tax liability.
However, the IRS is not extending the April 15th filing deadline. The extension is for payment of taxes due. If taxpayers are not timely filing by the April 15th deadline, an extension of time is required to be filed in order to avoid a possible late filing penalty.
Payment of 2020 quarterly estimated taxes for individuals and businesses has not yet been addressed. Although it appears that these payments may also be delayed, this has not been officially announced. The first estimate is due April 15th and the second estimate is due June 15th for calendar year taxpayers.
Taxpayers also need to be aware of their state filing and payment deadlines. Most states have not announced an extension of the filing or payment deadline.
We are awaiting additional guidance from the Treasury and will keep you informed as we receive it.
Please contact your Legacy Professionals LLP representative with any questions.
Legacy News Flash 20-5