Dear Clients,
We strive to bring you the latest information regarding income taxes, especially during this time of uncertainty.
Information is rapidly changing, but at this time the various news outlets are reporting that the IRS will be moving the tax deadline for individuals and businesses to July 15. There has not been an official pronouncement, so we will bring you further updates as they occur.
We can confirm that, on Wednesday, March 18, the IRS released Notice 2020-17 providing guidance on the 90-day deferral for tax payments that was announced by Treasury Secretary Mnuchin the day before.
Taxpayers, other than C corporations, are able to defer federal income tax payment that would normally be due April 15, 2020 to July 15, 2020. Payments that are deferred include both payments for tax due for 2019 as well as 1st quarter estimated tax payments for 2020. The deferral is available for payment amounts up to $1,000,000. The $1 million limit is considered on an aggregated basis (that is the sum of the 2019 liability and 2020 1st quarter estimate combined cannot be more than $1 million).
While deferring the due date of these payments, the following items are not deferred:
- Second quarter estimated tax payments for 2020 are due on June 15, 2020
- Contributions to IRA and health savings accounts for 2019 must be made by April 15.
Many states have not yet indicated how they are approaching this new IRS deadline. We are monitoring this situation and expect a majority of states to adopt the same deadline.
Some of our offices have been closed due to government mandates, however, we are working remotely and maintaining a "business as usual" atmosphere. We are utilizing electronic methods to assist in the process of receiving your information and delivering your tax returns. If you are not already connected to TaxCaddy or our online portal, please contact us at
[email protected].
All office phone lines remain operational and we are available to answer your calls between 8:30 am and 5 pm local time. Please call before visiting one of our offices to confirm if staff are present.
We will continue to keep you updated as soon as any new information becomes available. Please do not hesitate to contact us with any questions you may have.
