Rumors about a possible Internal Revenue Service (IRS) extension of the April 15 tax deadline finally came to fruition this week. Due to the unprecedented coronavirus (COVID-19) crisis, the IRS is deferring deadlines for tax payments and deadlines.
In a statement released on Wednesday, Treasury and the IRS announced an extension of the due date for Federal income tax payments to July 15, 2020 for payments of up to $10 million for corporations and up to $1 million for individuals – regardless of filing status – and other unincorporated entities. Associated interest, additions to tax and penalties for late payment will also be waived until July 15, 2020. You can read the full notice here. This extension is only for payments that would otherwise be due on April 15, 2020.
The IRS has created a clearinghouse COVID-19 webpage at IRS.gov/coronavirus for all available tax-related information. This page will be updated as more information becomes available.
Something to keep in mind, which makes the tax game even more confusing. First quarter estimated tax payments for 2020 are also due on April 15, 2020. These payments are deferred until July 15, 2020, as well. However, second quarter estimated tax payments are still due on June 15, 2020. So, technically, the second quarter payment for 2020 is due before the first quarter 2020 payment.
As of now, Henry+Horne remains open and continues to work diligently to get tax returns prepared and ready to file by April 15. If you have any questions or concerns about the new tax deadlines or how coronavirus impacts your business, don’t hesitate to contact us. For more information and resources on COVID-19, see our coronavirus page.