We sent communication yesterday that the Internal Revenue Service (IRS) and U.S. Treasury Department proposed a 90 day extension on certain tax payments in response to the Coronavirus outbreak. A few elements of the legislation were unclear, but we received guidance from the IRS on this special payment relief.
- The filing deadline for tax returns remains April 15, 2020.
- Individuals who owe tax payments to the IRS can defer up to $1 million within the 90-day window, without penalties or interest.
- This 90-day extension relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.
- Corporations can defer up to $10 million of tax payments for 90 days.
- Those who planned to request the automatic six-month extension to file may still do so to avoid any late filing penalties.
- There is no payment extension provision regarding any other type of federal tax or for the filing of any other tax return or information return.
- Regarding NJ and all other state filing and tax payment deadlines, we anticipate each state will have their own legislation.
According to the IRS, penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.1
Please click here for additional information from the IRS.
We will continue to provide you with updates as they become available. In the meantime, please feel free to contact Cg (732.676.4100) with questions about your tax return. Wishing you health and safety in these trying times!