By Keiter CPAs
On March 18, 2020, The U.S. Treasury Department and Internal Revenue Service (IRS) issued guidance to provide tax relief for Affected Taxpayers in response to the Coronavirus (COVID-19) pandemic.
IRS Deferred Tax Payments Details
The guidance allows all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest.
The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest (“Affected Taxpayers”). The Notice also provides relief for 2020 first quarter estimated taxes due on April 15, 2020.
This guidance does not change the April 15 tax return filing deadlines but does relieve the payment requirements for Affected Taxpayers. The IRS does continue to allow taxpayers to file extensions to extend the time to file tax returns under the existing provisions. Read more.
We will continue to monitor for how the states adjust their requirements.
IRS Webpage for Taxpayer’s Impacted by Coronavirus
On March 12, 2020, a new webpage was established by the Internal Revenue Service (IRS) that focuses on steps to help taxpayers, businesses and others affected by the coronavirus.
The page will be updated as additional guidance is released pending the outcome of coronavirus-related legislation. Check the site frequently to stay current on tax changes that may affect you or your business.
Other information about actions being taken by the U.S. government is available on their website. The Department of Treasury also has information available at Coronavirus: Resources, Updates, and What You Should Know.
Keiter is closely monitoring tax changes related to the coronavirus. We will keep you updated and informed of tax savings and planning opportunities.
Questions? Please contact your Keiter representative or Email | Call: 804.747.0000
About the Author
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.