The United States Treasury Department announced today, March 17, that it would be pushing back the April 15 deadline to pay taxes owed by 90 days, giving Americans three extra months to pay their 2019 income tax bills. This gives millions of individuals and C-Corporation businesses extra time needed to pay these out-of-pocket costs in light of COVID-19.
Treasury Secretary Steven Mnuchin made the unprecedented announcement and explained that individuals can defer up to $1 million of tax liability and corporations will receive an extension on up to $10 million.
Mnuchin explained that with this new regulation, the IRS, under President Trump’s national-emergency declaration, will also waive interest fees and penalties. Individuals and businesses should file their taxes as normal, and they will not incur interest or penalties. Taxpayers will still need to file for an extension by April 15 if they are not planning to file their taxes by that date.
The move delaying payment requirements aims to give businesses and individuals the ability to lessen cash flow issues they may be faced with as a result of the Coronavirus.
At this point, we have not received any guidance on payroll taxes or payments due by trusts. We also do not know if 2020 first quarter estimated taxes are expected to be paid by the normal April 15 deadline or if they will be deferred as well. We will provide additional guidance as it becomes available.
Our State and Local Tax Services Group is monitoring developments at the state level. View this chart provided by the AICPA to learn more.
If you have any questions, you may reach out to your RubinBrown team to learn more.
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