IRS Defers Payment Date for 2019 Tax Returns by 90 Days
March 18, 2020
In a press conference yesterday, Treasury Secretary, Steven Mnuchin, announced that the IRS is giving individuals and businesses an additional 90 days to pay taxes on their 2019 tax returns without being subject to interest and penalties. The payment deadline is extended from April 15th to July 15th. Individuals can defer taxes up to $1 million while corporations can defer up to $10 million.
At this time, it appears that the April 15th filing deadline has not been extended; only the payment of taxes has been extended. This means that in order to defer your taxes, a tax return must be filed or extended by April 15th. An extended return gives a taxpayer an additional six months until October 15th to file a return but does not extend the time to pay beyond July 15th.
No specific guidance was provided for 2020 quarterly estimated tax payments that are due on April 15th, June 15th, September 15th, and next January 15th.
There is a possibility that the IRS may extend the filing deadline. Just recently, they extended the deadline until July 15th for filing, tax return payments, and quarterly estimates for taxpayers affected by the Tennessee tornadoes. The IRS is encouraging taxpayers to file on time especially if they expect to receive a refund.
In addition, no information has been provided by the States regarding their deadlines for tax return filing and/or payments.
In any case, we are continuing to move forward on our tax preparation work for our clients. If it is determined that you have a payment due, we will remind you that you have until July 15th to pay the balance due.
As an additional reminder, due to the Coronavirus, most of our staff are working offsite and we are encouraging our clients to avoid coming into our office for any reason. Feel free to take advantage of the many electronic and physical delivery options available to you.
We will closely monitor any new developments and will keep you informed. If you have any questions, please contact your MichaelSilver tax professionals at 847.982.0333.