3-20-20 Client Alert - Coronavirus Tax Relief (Federal Payment and Filing Deadline Extended to July 15, 2020)
WOODS OVIATT GILMAN LLP CORONAVIRUS (COVID-19) CLIENT ALERT
Coronavirus Tax Relief (Federal Payment and Filing Deadline Extended to July 15, 2020)
Treasury Secretary Steven Mnuchin announced on March 20th that the Treasury and the Internal Revenue Service (“IRS”) have postponed the April 15th deadline for paying income and estimated tax payments and filing tax returns to July 15, 2020. This relief only applies to federal taxes. New York State has not provided any extension for the payment of taxes or the filing of any tax returns.
All individuals and other non-corporate filers can defer up to $1 million of federal income tax (including self-employment tax) and estimated tax payments due on April 15, 2020 to July 15, 2020 regardless of filing status. “C” corporations are allowed a similar deferment of up to $10 million of federal income taxes and estimated taxes due on April 15, 2020 to July 15, 2020. No penalties or interest accrue during this relief period.
If the taxes are not paid by July 15, 2020, interest, additions to tax, and late-payment penalties on these postponed payments will begin to accrue on July 16, 2020. It is important to remember that interest, late-payment penalties and additions to tax will accrue, without any suspension or deferral, on the amount of any federal taxes in excess of the $1 million and $10 million maximum postponement amounts if not paid by April 15, 2020.
Tax and information returns are due July 15, 2020 without any late filing penalties. Taxpayers who are unable to file by July 15, 2020 should consider timely applying for an extension to avoid late-filing penalties. The IRS has urged taxpayers who are owed a refund to file as quickly as possible. Since New York has not extended its filing due date, taxpayers unable to file by April 15, 2020 should file for an extension of time to file to avoid late filing penalties.
Please contact your Woods Oviatt attorney or the following attorneys regarding COVID-19 related issues:
COVID-19 Multidisciplinary Crisis Group Co-Leaders
