UPDATE: US Treasury Department Delays April 15 Tax Payment AND Filing Deadline by 90 days

By: Stephen M. Asbel, Esq.

March 20, 2020 - 11:55 AM

U.S. Treasury Secretary Steven Mnuchin announced earlier today that the usual April 15 deadline for filing tax returns has been delayed to July 15, 2020 with no interest or penalty. This extension is automatic so taxpayers do not have to do anything to request delaying to July 15. However, the Treasury is encouraging taxpayers who expect a refund to file as soon as possible so they can receive their money. 

In addition, we have received further information regarding the earlier announcement (below) that individual taxpayers can delay payments of taxes owed for the 2019. Quoting from the IRS announcement: “ Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.”

Additionally, C corporations can delay up to $10 million owed for 2019 income tax until July 15, 2020; and 2020 tax year estimated tax payments which were due April 15 can now be delayed until July 15, 2020.

March 18, 2020 5:13 PM

Treasury Secretary Steven T. Mnuchin clarified today that the deadline to FILE tax returns is still set for April 15th. Yesterday, Secretary Mnuchin announced that all individual and other non-corporate tax filers can defer up to $1 million of federal income tax payments that are due on April 15, 2020, 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 be due on April 15, 2020, until July 15, 2020, without penalties or interest. But to state again, this delay DOES NOT change the April 15th filing deadline.

“Americans should file their tax returns by April 15 because many will receive a refund. Those filing will be able to take advantage of their refunds sooner,” said Secretary Mnuchin. “This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties. Treasury and IRS are ensuring that hardworking Americans and businesses have additional liquidity for the next several months.” 

However, if you do need additional time to file, you can file an extension request with the IRS, which allows taxpayers to receive an automatic 6-month extension to file. Visit the IRS' website if you have questions or want additional information on filing an extension.

March 17th - 4:10 PM

During the global COVID-19 pandemic crisis, we are all experiencing tremendous disruption with our work, family, and social lives. On March 17th, some relief came from the U.S. Treasury Department, which announced a 90-day extension of the usual April 15th deadline for most taxpayers to pay federal taxes they owe for the 2019 tax year. For individuals, they may delay payment of tax owed up to a maximum of $1 million for 90 days without incurring interest or penalties. Corporate tax filers have the same 90-day extension for up to $10 million owed. If you are expecting a refund on your tax return, you may want to file as soon as you can to get your refund money as quickly as possible.

It is important to note that this action by the U.S. Treasury does not extend the time to pay taxes owed to state or local governments. Taxpayers should check with their state and local tax collecting agencies regarding those deadlines. The American Institute of Certified Public Accountants has prepared a chart of the status of any actions by state tax authorities in response to the COVID19 crisis. You can view the chart on the AICPA's website

If you have questions, or would like additional information, please contact Steve Asbel, Partner in Reger Rizzo & Darnall’s Estates & Trusts Group,  at 215.495.6523, or via email at sasbel@regerlaw.com.

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