• IRS Extends Tax Deadline in Response to COVID-19

    The United States Treasury announced today, March 17, 2020, an effort to help mitigate the effects caused by the spread of the Coronavirus (COVID-19) pandemic, the April 15 tax payment deadline will be extended by 90 days.

    The relief is available for Federal income tax payments, including payments of tax on self-employment income, otherwise due on April 15, 2020. Thus, it applies to the payment of Federal income taxes for the 2019 tax year, as well estimated income tax payments for the 2020 tax year that are due on April 15, 2020.

    This extension will allow for up to $1 million dollars in taxes for individuals and $10 million in taxes for corporations to be deferred for 90 days. This payment extension is automatic, and will provide relief for individuals and corporations who are having trouble paying tax obligations, or experiencing other complications due to the spread of COVID-19.

    At this time, the IRS has not yet extended the time to file, only to pay.  An extension of the filing due date may be forthcoming in the days ahead and we will update this post at that time.

    Previously, any extensions filed with Form 4868 required tax obligations to still be paid by the April 15 deadline, regardless of the fact the deadline to file the return had been extended. Under these new requirements, the tax payments are not due until the new deadline.

    The specific details of how such a policy will be carried out have not yet been provided by Treasury, and the states have not had a chance to consider whether to conform. We will continue to provide updated information as it is received.

    Those who can still file and pay any tax obligations by April 15th are encouraged to do so. Our clients can share documents with the firm using H&P's secure website-based portal. If we can provide information about this resource for you, please contact us.

    These technological capabilities will allow us to help our clients complete as much 2019 work as possible in advance of the traditional April 15th deadline and we encourage clients to take advantage of these resources where possible. Our commitment to help navigate our clients through a complex financial world has never been more important, and we will continue to focus on issues affecting you and your business in the weeks and months ahead.

    If you have any questions or concerns, please contact your Holt & Patterson accountant to determine how this relief may impact your specific situation.