On Friday, March 20th, Treasury Secretary Steven Mnuchin tweeted, “At @realDonaldTrump’s direction, we are moving Tax Day from April 15th to July 15th. All taxpayers and businesses will have this extra time to file and make payments without interest or penalties.”
We would like to draw your attention on these following updates,
· The tax postponement applies to any “individual, a trust, estate, partnership, association, company or corporation” with a federal tax return or tax filing and payment due on April 15th.
· The taxpayers will get an automatic postponement of that deadline until July 15th. There’s no must file any forms or request an extension. As a result, businesses and individuals will have until July 15th, 2020, to file returns and pay any taxes that were originally due April 15th.
· It’s still unclear the flexibility to form IRA contributions for 2019 by July 15th, 2020. Previously announced tax payment extension applies to individual tax payments up to $1 million and company tax payments up to $10 million, taxpayers conceivably remain subject to tax payment obligations on April 15th for any amounts above these levels. Hopefully, the IRS guidance will clarify this question.
· The tax payment extension announced by the IRS also extends the primary quarter income tax payment obligation from April 15th, 2020, to July 15th, 2020, but not the second-quarter income tax payment obligation due June 15th, 2020
· These changes explicitly don’t apply to the other variety of federal tax or any federal information returns. For state tax developments associated with the coronavirus outbreak, see the AICPA list here.
· On Wednesday, March 18th, 2020, President Trump signed into law H.R. 6201, the “Families First Coronavirus Response Act,” which provides for supplemental appropriations associated with the COVID-19 public health emergency, furthermore as waivers and modifications of Federal nutrition programs, employment-related protections and benefits, health programs and coverage requirements, and related employer tax credits and tax exemptions. Our research team is functioning on deciphering the new law, and please look out for information within the coming days.
While the IRS has granted overtime to file, it’s my recommendation that 2019 filing be completed as soon as possible, so you get your tax refund credited to your checking account, and therefore the same is invested and forms a part of your estate. Please reach out to us if you have any questions regarding your 2019 tax filing, business formation, bookkeeping, payroll processing, or other services we offer.