As previously reported, the Treasury Department and the IRS announced on March 17 an extension to July 15 for the payment of federal income taxes, interest and penalty free.
On March 20, Treasury Secretary Steven Mnuchin tweeted, "We are moving Tax Day from April 15 to July 15." A formal announcement was issued by the IRS on March 21.
Taxpayers now have until July 15 to file and pay 2019 federal income taxes and first-quarter 2020 federal estimated tax installment. Absent any guidance to the contrary, second-quarter 2020 estimated payments remain due on June 15. It is important to note that the right to defer filing/payment does not apply to other taxes such as payroll taxes, gift taxes, estate taxes or excise taxes.
Presently, taxpayers can still request by April 15 a six-month extension to file returns by October 15 if the July 15 deferral is insufficient. However, interest and penalties will accrue after July 15. Whether the Treasury or the IRS will be lenient in the imposition of penalties and interest after July 15 and if so, for how long, are still to be determined.
This filing and payment extension applies to federal income tax returns. Such extension does not automatically apply to your state and local tax filing and tax payment deadline, although it is expected that most states will likely follow suit in some fashion. In California, for example, individuals will have until June 15 to both file and pay their state taxes.
For some taxpayers, individuals and businesses alike, preparing tax returns in this environment is very challenging. This announcement has now provided tax filing and payment relief by extending the April 15 filing and payment deadline. We encourage clients to submit their tax material to us in order to file sooner and secure refunds, to implement last minute 2019 tax saving strategies, or to timely project 2019 and first quarter 2020 tax obligations to assist with cash flow management and planning.
For More Information
If you would like more information, contact the practitioner with whom you are in regular contact or any of the practitioners in the Tax Accounting Group. For information about other pertinent tax topics, please visit our publications page.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.