Updates on Tax Deadline 2020
March 23, 2020
Update on Tax Deadlines
The IRS has issued Notice 2020-17 Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic. https://www.irs.gov/pub/irs-drop/n-20-17.pdf
A summary of the key provisions of the notice are as follows:
- Individuals who owe $1,000,000 or less on April 15, 2020 can defer those tax payments until July 15, 2020
- The $1,000,000 threshold is based on the total taxes owed on April 15 (including any balance due for 2019 plus your 1Q 2020 estimated payment)
- Corporations who owe $10,000,000 or less on April 15, 2020 receive a similar deferral of those tax payments until July 15, 2020
- The tax return filing deadline remains April 15, 2020. This means that either a tax return or an extension must still be filed by April 15, 2020.
In general, we anticipate advising most of our clients to take advantage of the deferral that is being offered under this relief provision. Also, we know that the AICPA as well as a number of congressional representatives are encouraging the IRS to provide additional relief by changing the actual tax return filing deadline from April 15 to July 15. At present, this has not occurred.
We will continue to monitor developments and will communicate them to you as we learn more. Sincerely,
Jeffrey L. Thomason, CPA | Chief Manager Watkins Uiberall, PLLC | Certified Public Accountants