Treasury and IRS Issue Guidance: Tax Deadline Remains April 15 with Tax Payment Deferment to July 15
March 17, 2020
Get the latest in this Aprio blog: The Latest on Tax Filing and Payment Dates.
Today, the Treasury and IRS issued guidance on yesterday’s news of a tax payment deferment. The guidance states that federal tax returns must still be filed by April 15, unless paperwork is submitted by the individual or corporation for a six-month tax extension.
The federal individual and corporate income tax payment due date related to the 2019 tax year and first quarter estimates for 2020 will be deferred by 90 days to July 15, 2020.
This means that individual taxpayers can delay paying their income taxes on up to $1 million owed, according to Treasury Secretary Steven Mnuchin, without being subject to interest or penalties.
Corporate taxpayers are also being granted 90 days to pay up to $10 million in federal taxes owed without interest or penalties.
This deferment of federal tax payments will result in about $300 billion of additional liquidity in the economy in the near term, according to a press release issued today by the U.S. Department of the Treasury.
Some states have also announced extensions and deferments, an updated list of state actions is available from the AICPA here.
We will provide additional updates and details as they are made available. If you have any immediate questions, please reach out to your Aprio Relationship Partner, or contact us here.
Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding this matter.
About the Author
Mitchell is the partner-in-charge of Aprio’s Tax practice as well as the Technology & Biosciences group. He has been a partner since 1990 with Aprio, which is the largest Georgia-based tax, accounting and consulting firm. Mitchell works with companies in the software, gaming, clean tech, financial technology (FinTech), health care IT, processing, biosciences (biotech and medical device) and manufacturing industries. Whether a company is pre-revenue, starting up, growing or preparing for a liquidity event, Mitchell works with them to maximize their potential at each stage. He is known for promoting research, innovation and entrepreneurship by enabling companies to be successful, regardless of where they are in their business lifecycle.