In response to the coronavirus pandemic, Treasury Secretary Steven Mnuchin announced on Tuesday, March 17th, that the Trump Administration is granting 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.
The filing deadline was also extended by the IRS shortly after the initial announcement. The IRS also clarified that the extension for payment of taxes due also includes the first quarterly estimated tax payment due April 15th but it does not include the second quarterly estimate due June 15th.
Most states have also extended the filing and payment of state income taxes due on April 15th. Some states have followed the IRS extension due date of July 15th. However, others have not. Additionally, some states extended the payment of the first quarterly estimated tax payment but not all. The following examples illustrate the difference between states:
ILLINOIS has extended the filing deadline and payment for any balance due on the 2019 income tax return to July 15, 2020. The extended due date does not apply to any of the quarterly estimated tax payments.
INDIANA is following the IRS and extending the filing and payment deadline to July 15, 2020, including the first quarter estimated tax payment due April 15th.
MINNESOTA is also following the IRS extended deadline of July 15, 2020 to file and make payments of the balance due. However, it does not include the payment of quarterly estimated tax payments.
Guidance on additional states can be found in the attached summary: Tax_Filing_and_Tax_Payment_Relief_for_Coronavirus_COVID_19_Pandemic
Please contact your Legacy Professionals LLP representative with any questions.