Tax Deadline and Payments Deferred Due to Covid-19 Outbreak
U.S. Treasury Department and IRS Deferring Tax Deadline and Payments Due to Covid-19 Outbreak
We are sure that many of you have been concerned about how the Coronavirus outbreak is affecting your tax situation. We ensure you that our staff is still working diligently to complete your tax returns and file a timely extension when necessary. The AICPA and the U.S. Treasury Department have issued guidance regarding how the President’s emergency declaration will affect your tax situation. To keep you abreast of the latest changes, we will be updating our blog on our website as well as our Facebook page regarding any updates related to this situation. While our office is remaining fully staffed, we are mindful of limiting the office traffic. If you wish to come in to speak with one of our staff members, please call our office ahead of time to make sure that our conference room is available.
Following President Donald Trump’s emergency declaration, the U.S. Treasury Department and Internal Revenue Service issued guidance allowing all individual and other non-corporate tax filers a 90-day reprieve to file and pay their tax liability typically due on April 15 until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would typically be due on April 15 until July 15, 2020 without penalties or interest. It is important to note that we will still be able to file an extension on July 15 for those taxpayers who have paid in their tax liability but have not filed their tax return yet. We are continuing to work as we normally would and ask that our clients continue to bring their tax documents in despite the extended deadline.
As for how each state is handling the filing deadline and payments due, this could change over time. The AICPA has released a chart with the different state decisions. The chart can be found here – https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf. Delaware has not issued a deferment at this time and their offices remain open during the State of Emergency.
As always, thank you for your continued patronage. Please don’t hesitate to call us if you have any questions or concerns.