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Saturday, March 21, 2020

Procrastinators Rejoice - Income Tax Deadlines Extended to July 15, 2020

Recently, income tax return payment deadlines were extended under Notice 2020-17, subject to dollar limitations. This notice has now been superseded by Notice 2020-18. This Notice now extends both income tax payments due, as well as return filings due, on April 15 to July 15. The dollar limitations provided in Notice 2020-17 no longer apply.

Keep in mind this is for income tax relief only, and extends to individuals, trusts, estates, partnerships, associations, companies, and corporations with an April 15, 2020 return filing due date or payment due date.

Now you can keep your tax dollars invested for an additional two months and rack up those stock market gains - if the market will only stop falling, that is.

the extension only applies to federal taxes - states and other localities may be offering their own relief separately.

Stay safe!

Notice 2020-18

Tuesday, March 17, 2020

Coronavirus Update: 90 Day Extension to Pay Federal Taxes

In a press briefing, Treasury Secretary Steven Mnuchin announced that the April 15 due date for payment of federal income taxes has been pushed back 90 days. Individuals can defer up to $1 million of tax liability, and corporations can defer $10 million, without being subject to interest nor penalties for late filing.

Some observations:

  • This is an extension to pay, not to file. So taxpayers still need to file on time.
  • However, individuals can get an automatic extension to file for six months if they file an extension request, so the lack of an extension by Treasury for filing should not be troublesome.
  • It remains to be seen whether state and local governments will follow suit.

Presumably, written guidance will be forthcoming that may bring more details.

Saturday, March 14, 2020

Will the Income Tax Return Filing Deadline be Extended Due to the Coronavirus?

It seems likely. It would be unprecedented (to my knowledge) for there to be a national extension, but of course such extensions are regularly granted to regions afflicted by disasters from time to time.

President Trump indicated last week that he was instructing Treasury to allow for deferral of tax payment deadlines, but what I have read on that only mentioned payments and not filing due dates. There are also a number of members of Congress calling for an extension. And President Trump has now declared a national emergency. So things do seem to be lining up for a gift to procrastinators everywhere.